The International Monetary Fund (IMF) warned that “risks are tilted to the downside” referring to the concerns over the failure to address the humanitarian issues of Rakhine crisis. It was also warned that the Myanmar economy “appears to be losing momentum”. “A prolonged humanitarian crisis and any withdrawal of trade preferences could reduce concessional donor financing and investment leading to lower growth,” it said. Weaknesses in the banking sector, macro finance spillovers in particular may become more severe if banks delay recapitalisation, the IMF added. Inflation was moderate in the fiscal year 2017-18, with 4.0 percent on average, but has been rising from increased fuel prices and a depreciating kyat. The kyat has depreciated 14.5 percent since April 2018. The IMF expects economic growth of 6.4 percent in the fiscal year 2018-19 (October 2018 to September 2019), if government spending picks up.