According to the latest Maldives Development Update (MDU) released by the World Bank, the Maldives has emerged as the fastest-growing economy in South Asia.
The report attributes the robust growth to an increase in tourist arrivals, capital expenditure, and private expenditure, and predicts that the Maldivian economy will remain strong in the coming years. Additionally, the World Bank expects the number of people living below the poverty line to decrease to pre-COVID-19 levels.
During the launch of the MDU at the Maldives National University, Deputy Finance Minister Mariyam Manarath highlighted the government’s strong fiscal reform policies, which aim to prioritize the most vulnerable people in society to achieve financial sustainability. She also emphasized the importance of investing in projects such as the Ihavandhippolhu port and the Hankede integrated tourism project to transform the economy.
At the MDU launch, Finance Ministry’s Chief Financial Budget Executive Ahmed Saruvash shared the government’s efforts to strengthen the national health insurance scheme, Aasandha, and prepare for the increase in the number of elderly people in the Maldives due to current population changes. Saruvash further emphasized the significance of revenue-side consolidation, with the initial target set at three percent, while acknowledging that tourism growth has exceeded expectations.
