Box 1B. Myanmar
The current infrastructure market in Myanmar is very small, with 2011 spend
estimated at US$ 800 million, reflecting the current 87 per cent rural population and
smaller cities. However, the country has the potential to quadruple the size of its
economy from US$ 45 billion in 2010 to more than US$ 200 million in 2030. In order
to support this projected economic growth, Myanmar’s infrastructure stock needs to
increase in line with the ambitious GDP growth target of 8 per cent.
In a recent McKinsey Global Institute report on Myanmar3, it was estimated that
the country will need a total infrastructure and real estate investment of US$ 320
billion between 2010 and 2030. About 60 per cent of this investment needs to be in
residential and commercial real estate; however, power plants, water infrastructure,
road and rail networks will also need substantial investment. Large cities alone will
need about 45 per cent of the estimated infrastructure investment to cater to the
new and fast growing urban population.