Muizzu’s Recipe for Maldives’ Economic Recovery

The Maldivian economy is under strain, with President Muizzu holding a supermajority in Parliament. Moody's downgraded Maldives on 11 September, citing default risks. Foreign debt is US$3.4 billion, mostly to India and China. World Bank put public debt at US$8 billion (122.9% of GDP). The country needs US$114 million in 2024, US$557 million in 2025, and US$1.07 billion in 2026. Gross reserves are US$437 million (1.5 months of imports). Fitch assigned junk status in August due to inability to repay US$500 million Sukuk due 2026. Economy decelerated in Q2 2024 after 9.8% growth in Q1. An Indian boycott cost tourism US$158 million. Muizzu has shifted from anti-India stance to mend ties with India while maintaining ties with China.

The Maldivian economy is under strain, with President Muizzu holding a supermajority in Parliament. Moody's downgraded Maldives on 11 September, citing default risks. Foreign debt is US$3.4 billion, mostly to India and China. World Bank put public debt at US$8 billion (122.9% of GDP). The country needs US$114 million in 2024, US$557 million in 2025, and US$1.07 billion in 2026. Gross reserves are US$437 million (1.5 months of imports). Fitch assigned junk status in August due to inability to repay US$500 million Sukuk due 2026. Economy decelerated in Q2 2024 after 9.8% growth in Q1. An Indian boycott cost tourism US$158 million. Muizzu has shifted from anti-India stance to mend ties with India while maintaining ties with China.

The Maldivian economy is under strain, with President Muizzu holding a supermajority in Parliament. Moody's downgraded Maldives on 11 September, citing default risks. Foreign debt is US$3.4 billion, mostly to India and China. World Bank put public debt at US$8 billion (122.9% of GDP). The country needs US$114 million in 2024, US$557 million in 2025, and US$1.07 billion in 2026. Gross reserves are US$437 million (1.5 months of imports). Fitch assigned junk status in August due to inability to repay US$500 million Sukuk due 2026. Economy decelerated in Q2 2024 after 9.8% growth in Q1. An Indian boycott cost tourism US$158 million. Muizzu has shifted from anti-India stance to mend ties with India while maintaining ties with China.

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