Economic Growth Positive But Reforms Needed to Stay on Track: World Bank

The World Bank's Maldives Development Update, published 3 October, reports that the Maldivian economy grew 5.5% year-on-year in Q1 2023, surpassing pre-pandemic levels, and is expected to reduce poverty. Tourist arrivals reached 1.2 million by August, projected to hit 1.9 million for the year. Challenges include inflation of 3.5% due to higher global prices and GST increase, a doubled current account deficit to 16.7% of GDP in 2022, and declining gross reserves from $790 million to $594.1 million. The fiscal deficit declined to 11% of GDP in May 2023. The MMA increased exposure to government bonds to 52%. World Bank Country Director Faris Hadad-Zervos emphasized the need for prudent debt management and fiscal adjustment. The report also noted that subsidy reforms were not implemented, and tourism remained strong despite the Russia-Ukraine conflict.

The World Bank's Maldives Development Update, published 3 October, reports that the Maldivian economy grew 5.5% year-on-year in Q1 2023, surpassing pre-pandemic levels, and is expected to reduce poverty. Tourist arrivals reached 1.2 million by August, projected to hit 1.9 million for the year. Challenges include inflation of 3.5% due to higher global prices and GST increase, a doubled current account deficit to 16.7% of GDP in 2022, and declining gross reserves from $790 million to $594.1 million. The fiscal deficit declined to 11% of GDP in May 2023. The MMA increased exposure to government bonds to 52%. World Bank Country Director Faris Hadad-Zervos emphasized the need for prudent debt management and fiscal adjustment. The report also noted that subsidy reforms were not implemented, and tourism remained strong despite the Russia-Ukraine conflict.

The World Bank's Maldives Development Update, published 3 October, reports that the Maldivian economy grew 5.5% year-on-year in Q1 2023, surpassing pre-pandemic levels, and is expected to reduce poverty. Tourist arrivals reached 1.2 million by August, projected to hit 1.9 million for the year. Challenges include inflation of 3.5% due to higher global prices and GST increase, a doubled current account deficit to 16.7% of GDP in 2022, and declining gross reserves from $790 million to $594.1 million. The fiscal deficit declined to 11% of GDP in May 2023. The MMA increased exposure to government bonds to 52%. World Bank Country Director Faris Hadad-Zervos emphasized the need for prudent debt management and fiscal adjustment. The report also noted that subsidy reforms were not implemented, and tourism remained strong despite the Russia-Ukraine conflict.

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