Tourism buoys Maldivian economy despite financial strains, IMF reports

IMF stated tourism played a paramount role in maintaining economic momentum despite financial challenges. Following a June 4-14 Article IV Mission, IMF noted improved resilience due to fiscal consolidation in 2025. Growth is projected to slow to 1% in 2026 due to weaker tourism and higher energy prices, recovering to 4% by 2027. Downside risks dominate, debt risks remain high, and current account deficit will widen. IMF recommended supply-side reforms, human capital, climate resilience, and integrating climate sensitivity into public financial management.

IMF stated tourism played a paramount role in maintaining economic momentum despite financial challenges. Following a June 4-14 Article IV Mission, IMF noted improved resilience due to fiscal consolidation in 2025. Growth is projected to slow to 1% in 2026 due to weaker tourism and higher energy prices, recovering to 4% by 2027. Downside risks dominate, debt risks remain high, and current account deficit will widen. IMF recommended supply-side reforms, human capital, climate resilience, and integrating climate sensitivity into public financial management.

IMF stated tourism played a paramount role in maintaining economic momentum despite financial challenges. Following a June 4-14 Article IV Mission, IMF noted improved resilience due to fiscal consolidation in 2025. Growth is projected to slow to 1% in 2026 due to weaker tourism and higher energy prices, recovering to 4% by 2027. Downside risks dominate, debt risks remain high, and current account deficit will widen. IMF recommended supply-side reforms, human capital, climate resilience, and integrating climate sensitivity into public financial management.

This story involves 1 source and may affect public understanding of tourism / economic resilience.