IMF forecasts Maldives economic recovery from 2027

IMF projects Maldives economic growth to slow to 1% in 2026 due to Middle East conflict and higher fuel prices, but recover to around 4% in 2027. The forecast followed a 10-day delegation visit from April 4. IMF noted that repayment of major external debts reduced immediate default risk, but debt servicing pressures remain. Current account deficit is expected to widen. IMF recommended structural reforms, human capital investment, improved business environment, and climate adaptation. It welcomed MMA's resumption of open market operations and stressed continuing fiscal reforms.

IMF projects Maldives economic growth to slow to 1% in 2026 due to Middle East conflict and higher fuel prices, but recover to around 4% in 2027. The forecast followed a 10-day delegation visit from April 4. IMF noted that repayment of major external debts reduced immediate default risk, but debt servicing pressures remain. Current account deficit is expected to widen. IMF recommended structural reforms, human capital investment, improved business environment, and climate adaptation. It welcomed MMA's resumption of open market operations and stressed continuing fiscal reforms.

IMF projects Maldives economic growth to slow to 1% in 2026 due to Middle East conflict and higher fuel prices, but recover to around 4% in 2027. The forecast followed a 10-day delegation visit from April 4. IMF noted that repayment of major external debts reduced immediate default risk, but debt servicing pressures remain. Current account deficit is expected to widen. IMF recommended structural reforms, human capital investment, improved business environment, and climate adaptation. It welcomed MMA's resumption of open market operations and stressed continuing fiscal reforms.

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