Myanmar poverty rates surge as middle class shrinks following military coup

Poverty in Myanmar has surged while the middle class is steadily disappearing in the years since the military coup, Myanmar’s Permanent Representative to the United Nations, Ambassador Kyaw Moe Htun, said on 23 April.

He made the remarks during a follow-up meeting of the United Nations Economic and Social Council on Financing for Development, held at the UN Headquarters in New York on 23 April, according to the Office of Myanmar’s Permanent Representative to the United Nations.

“Since the illegal coup, GDP has been declining and inflation has been rising. Poverty has increased to nearly 50 percent of the population, and the middle class is disappearing,” Kyaw Moe Htun said.

He added that foreign direct investment has dropped by 74 per cent, while microfinance institutions and their operations have also declined. Efforts to reform the financial sector have been slow.

Citing a World Bank report, he warned that declining job opportunities, the outflow of skilled workers, the erosion of human resources, and the deterioration of education and healthcare services are all undermining Myanmar’s long-term development prospects.

“Myanmar is at a very critical juncture where an entire generation could be lost,” he said.

He stressed that the military regime’s violence against civilians and its disregard for the rule of law are key drivers of the country’s economic decline and instability. He added that regional and international efforts to address the crisis must focus on tackling its root causes.

According to a June 2024 report by the United Nations Development Programme (UNDP Myanmar), the country’s middle class had shrunk by 50 percent in the three years since the military takeover, at the time of the report. Around 75 percent of the population – an estimated 42 million people – are now living in poverty or are at risk of falling into poverty, while more than 13 million people are facing food insecurity.