IMF Cautions Maldives on Slowdown After Positive Post-Pandemic Growth, Urges Implementation of Proposed Fiscal Reforms

An IMF mission led by Piyaporn Sodsriwiboon visited the Maldives from 23 January to 6 February to discuss economic developments and policy priorities. Growth in 2024 is projected at 5.2 percent, with tourist arrivals expected to rise. The IMF noted increased fiscal and external vulnerabilities and called for urgent policy adjustments, including fiscal reforms, SOE reforms, subsidy reforms, and healthcare reform. The mission commended the discontinuation of MMA advances. The Maldives remains at high risk of external and overall debt distress, with a projected large current account deficit. Climate vulnerabilities were highlighted. The mission met with Finance Minister Mohamed Shafeeq and MMA Governor Ali Hashim.

An IMF mission led by Piyaporn Sodsriwiboon visited the Maldives from 23 January to 6 February to discuss economic developments and policy priorities. Growth in 2024 is projected at 5.2 percent, with tourist arrivals expected to rise. The IMF noted increased fiscal and external vulnerabilities and called for urgent policy adjustments, including fiscal reforms, SOE reforms, subsidy reforms, and healthcare reform. The mission commended the discontinuation of MMA advances. The Maldives remains at high risk of external and overall debt distress, with a projected large current account deficit. Climate vulnerabilities were highlighted. The mission met with Finance Minister Mohamed Shafeeq and MMA Governor Ali Hashim.

An IMF mission led by Piyaporn Sodsriwiboon visited the Maldives from 23 January to 6 February to discuss economic developments and policy priorities. Growth in 2024 is projected at 5.2 percent, with tourist arrivals expected to rise. The IMF noted increased fiscal and external vulnerabilities and called for urgent policy adjustments, including fiscal reforms, SOE reforms, subsidy reforms, and healthcare reform. The mission commended the discontinuation of MMA advances. The Maldives remains at high risk of external and overall debt distress, with a projected large current account deficit. Climate vulnerabilities were highlighted. The mission met with Finance Minister Mohamed Shafeeq and MMA Governor Ali Hashim.

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