CNI News

13 Nov 2022

As the United States has imposed sanctions on Myanmar, there is no good news for Myanmar economy even if the House of Representatives dominated by the Democrats is replaced by the Republicans, according to Myanmar politics and economy observers.

Mid-term elections were held in the US on 8th November and as Republicans led by former President Donald Trump are likely to gain ground at the House of Representatives, Ukrainians are worried about the potential losses of military assistance from the US while Myanmar expects the easing of economic sanctions.

Mid-terms elections are not likely to have an impact on Myanmar economy and leadership change in the US has impacts on Myanmar, a Myanmar economic observer told the CNI.

Myanmar nationals queuing for daily meals at charities in Myanmar due to the economic crisis.

He said, " I can't see any direct impact. Mid-term elections are not important for US policies. Some new governors will take office. This always happens every two or four years. There is no impact on Myanmar. If the leadership was to be changed, there would be impacts. No significant change will take place. We will have to wait until 2024 to see whether the Republicans win the presidency. If the Republicans win, they won't tighten sanctions against us. At present, the US is tightening sanctions against us phase by phase."

There were speculations that support for Ukraine might be reduced if the Republicans dominate the House of Representatives, which is likely to lead the war to negotiations and the oil and dollar markets are likely to be stable.

The US has imposed sanctions on Myanmar generals who ousted the civilian government, resulting in an economic crisis.

Workers returning after work to the other side of the Yangon River in Dala.

As a result, the prices of consumer products and medicine and fuel are skyrocketing while US$ exchange rates are soaring.

Therefore, the SAC is trying to ease the crisis by importing oil from Russia.

Political Observer U Ye Tun told the CNI, "The support for Ukraine may be reduced but sanctions on Myanmar will not be lifted. If more sanctions are imposed on Myanmar, the country will have to rely on Russia for fuel. They will have to think about a better channel to import fuel from Russia via India or China."

The current political situation depends largely on the domestic political landscape rather than on the international community. political observers and economists pointed out that the economy of Myanmar mainly rests on stability and proper economic policies.