The Maldives Ministry of Economic Development and Trade has released its annual review, titled “Towards a Developed Nation by 2040,” which outlines the progress made over the past year under President Dr. Mohamed Muizzu’s administration. According to the review, the government has implemented significant reforms aimed at stabilising the economy, boosting investments, and diversifying growth sectors as part of its long-term vision.
Economic Reforms and Targets
The review highlights that upon taking office, President Muizzu faced challenging fiscal conditions, with public debt surpassing USD 8 billion, or 123% of the nation’s GDP. To address this, the administration reportedly introduced a series of fiscal measures, including efforts to reduce state expenditure, halt central bank monetisation, and restructure debt. These initiatives, according to the report, are intended to stabilise the economy and prepare the country for sustainable growth.
The government has set ambitious targets, including reaching a national nominal income of USD 12 billion by 2028, with 15% of GDP expected to come from digital services by 2030. The report suggests that these goals are part of the broader vision to transform the Maldives into a developed nation by 2040.
Infrastructure and Economic Initiatives
As per the review, several critical projects were launched in 2024, such as the development of the Maldives Economic Gateway in Ihavandhippolhu and the initiation of international bunkering services. The report also highlights that the largest renewable energy project in the nation’s history is set to begin physical construction within the next six months. These projects are seen as part of efforts to diversify the economy beyond tourism, capitalising on the Maldives’ strategic location for maritime trade and logistics.
Tourism and Trade Agreements
The review also details advancements in tourism and trade, noting that the Maldives has signed several agreements to enhance international trade and tourism. A Free Trade Agreement (FTA) with China, set to take effect in January 2025, is highlighted as a key development expected to expand market access for Maldivian fisheries and other exports.
Emphasis on Digital Transformation and Economic Diversification
The report indicates that the government is prioritising economic diversification, particularly in the digital and creative sectors. It projects that the contribution of digital services to the national economy will grow significantly by 2030. Additionally, the creation of new Special Economic Zones (SEZs) and the modernisation of financial services are expected to support the government’s efforts to foster innovation and economic resilience.
According to the review, the Maldives plans to continue leveraging strategic partnerships and international collaborations to attract foreign investments. The report concludes that the country remains on track to meet its economic targets, with policies focused on building a diversified and resilient economy by 2040.
