By Jared Ferrie
YANGON, June 17 (Reuters) - Myanmar's economy should grow8.5 percent during the current fiscal year, higher than earlierforecast thanks mainly to rising gas production and investment,the International Monetary Fund said on Tuesday.
In January, the IMF predicted that Myanmar would have 7.7percent growth during the fiscal year that ends March 2015.
The fund left unchanged its forecast that inflation duringthe fiscal year will be 6.5 percent.
Myanmar has launched sweeping economic and political reformsunder its quasi-civilian government, which came to power in 2011following nearly half a century of military rule. The governmenthas taken moves to attract foreign investment, create jobs andboost the country's weak infrastructure.
The IMF, which set up a monitoring program in Myanmar in2013, said it would "intensify" its technical assistance andtraining. Team leader Matt Davies told Reuters the Central Bankof Myanmar had undergone "huge change" over the past two years,including gaining independence from the finance ministry andmanaging a floating exchange rate.
Davies welcomed Myanmar's decision to allow a handful offoreign banks to begin limited operations after they receivelicences in September. However, he noted that their entry "willplace further demands on macroeconomic policy and stretchsupervision capacity".
Davies said he expects there will be more foreign investmentin manufacturing, telecommunications and natural resources.
Last year, Myanmar awarded telecommunications licences toQatar's Ooredoo and Norway's Telenor. Bothcompanies are building networks throughout the country and areexpected to launch service in the main cities within months.
In March, Myanmar awarded contracts to explore and operateoffshore oil and gas blocks to companies including Royal DutchShell, Statoil, ConocoPhillips andTotal. Myanmar exported $3.7 billion of gas in thefiscal year ended March 2013, up from $3.5 billion a yearearlier. Most of the gas went to neighbouring Thailand. (Editing by Richard Borsuk)
