The World Bank forecasts that Myanmar's economy will contract this year, as flooding and fighting take a severe toll nearly four years after the military ousted its government headed by Aung San Suu Kyi.

The World Bank expects Myanmar’s economy to contract in the current fiscal year, as elevated inflation, a slumping currency, and electricity and labor shortages further pressure a war-torn nation.

Myanmar's economy is expected to shrink by 1% in the current fiscal year, the World Bank said on Wednesday, sharply downgrading its economic forecast as severe floods compounded the challenges facing the conflict-torn country.