According to recent data released by the Maldives Monetary Authority (MMA), the outflow of remittances from Maldives surpassed half a billion dollars last year.
The economic landscape of Maldives is intricately intertwined with the presence of foreign workers, whose contributions and remittance outflow shape the country’s economic trajectory.
Foreign workers in Maldives received USD 587.2 million in wages last year, marking a notable increase compared to previous years. This upward trend in remittance outflow is further corroborated by the surge in transactions, with 84,000 remittances amounting to $70 million.
Bangladesh emerges as the primary contributor to remittance outflow, constituting 46% of the total amount. Other significant contributors include Nepal (9%), the Philippines (8%), Egypt (7%), and India (6%).
The substantial increase in remittance outflow mirrors the growing presence of foreign workers in Maldives. With an estimated 132,492 foreign workers in the country, the economic impact of their presence cannot be understated. The average remittance expenditure per foreign worker stands at approximately $4,422 annually.
The influx of foreign workers and the consequent remittance outflow necessitate a nuanced approach from policymakers. While foreign labour contributes to various sectors of the economy, measures to manage remittance outflow and ensure its alignment with national development goals are imperative.
