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As in 2016, the rate of growth will remain strong in 2017. Economic activity is expected to benefit from the democratic transition made possible by the November 2015 elections and with the National League for Democracy (NLD) taking power in April 2016. In addition, the approving of a new law on investments in October 2016 should also help boost activity, with the country feeling the benefits of vitality of the gas, telecommunications and consumer goods sectors. The development of tourism should also continue despite the lack of hotel accommodation. The construction sector will benefit from the boom in building the new tourism infrastructure. The country is experiencing an influx of foreign investment as its economy is opened up. However, despite the development of special economic zones, its infrastructure remains seriously inadequate, in particular for electricity, which places limits on its production capacity. On top of this, productivity is low and labour relatively unskilled. Whilst the banking sector remains underdeveloped, the supply of credit is growing rapidly and underpinning consumer spending and investment. In addition, the textile and clothing sector will benefit from the re-establishment, approved in September 2016, of the generalized preference system with the United States which will allow Myanmar privileged access to the US market.
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