IMF Welcomes Maldives’ Key Initial Steps, Advises Swift Implementation of Fiscal Reforms

The International Monetary Fund (IMF) welcomed Maldives' decision to raise goods and services taxes (GST) and discontinue exceptional use of Maldives Monetary Authority (MMA) advances, noting sizeable revenue windfalls in 2023. The IMF concluded an Article IV consultation, highlighting the economy's 13.9% growth in 2022, inflation at 1.9% in December 2023, but warning of a fiscal deficit of 13.4% of GDP, public debt at 118.7% of GDP, and a current account deficit of 22.8% in 2023. Gross international reserves fell to US$589 million. Real GDP growth is estimated at 4.4% in 2023 and 5.2% in 2024. The IMF urged immediate policy adjustments to restore debt sustainability and rebuild reserves, emphasizing the need for fiscal consolidation and better coordination. Risks include delayed reforms, weaker tourism growth, and climate change vulnerability.

The International Monetary Fund (IMF) welcomed Maldives' decision to raise goods and services taxes (GST) and discontinue exceptional use of Maldives Monetary Authority (MMA) advances, noting sizeable revenue windfalls in 2023. The IMF concluded an Article IV consultation, highlighting the economy's 13.9% growth in 2022, inflation at 1.9% in December 2023, but warning of a fiscal deficit of 13.4% of GDP, public debt at 118.7% of GDP, and a current account deficit of 22.8% in 2023. Gross international reserves fell to US$589 million. Real GDP growth is estimated at 4.4% in 2023 and 5.2% in 2024. The IMF urged immediate policy adjustments to restore debt sustainability and rebuild reserves, emphasizing the need for fiscal consolidation and better coordination. Risks include delayed reforms, weaker tourism growth, and climate change vulnerability.

The International Monetary Fund (IMF) welcomed Maldives' decision to raise goods and services taxes (GST) and discontinue exceptional use of Maldives Monetary Authority (MMA) advances, noting sizeable revenue windfalls in 2023. The IMF concluded an Article IV consultation, highlighting the economy's 13.9% growth in 2022, inflation at 1.9% in December 2023, but warning of a fiscal deficit of 13.4% of GDP, public debt at 118.7% of GDP, and a current account deficit of 22.8% in 2023. Gross international reserves fell to US$589 million. Real GDP growth is estimated at 4.4% in 2023 and 5.2% in 2024. The IMF urged immediate policy adjustments to restore debt sustainability and rebuild reserves, emphasizing the need for fiscal consolidation and better coordination. Risks include delayed reforms, weaker tourism growth, and climate change vulnerability.

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