Maldives has recorded a spot in the list of countries which shows a significant drop in Gross Domestic Product (GDP).
According to research by a visa waiver farm of America, ‘Esta’, Maldives ranks in the 5th place, among the countries which experienced a significant GDP fall, globally. This research shows that the GDP of Maldives has been decreased by 6.8%. The data for the research have been obtained from the World Bank and the World Travel and Tourism Council.
While Maldives is at 5th, Turks and Caicos Islands rank 1st in the list with Aruba taking the 2nd place followed by Macao SAR at 3rd.
The research further clarifies that the main reason for the drop in GDP is the effects on world tourism due to the global pandemic. It is worth noting that all the counties listed with a significant GDP drop, are the countries renowned internationally as the world’s best tourist destinations.
The Maldives too is a country of which the majority of its economic income depends on the tourism industry, Hence, due to the difficulties posed by the pandemic, the country has recorded a significant downfall in the past 4 months. Although the Maldives had reopened its borders on 15th July, the country did not reach the expected amount of tourists visits.
While Maldives is highly affected by the economic downfalls, the Economic Ministry states that the GDP of Maldives might fall to as deep as -11% if the COVID-19 cases worsen in the country. The ministry further states that Maldives is expected to revive and reach the level of economic strength reflected in last year, by 2022.
Apart from countries with a significant fall in GDP, Esta has also published a list of 20 countries with a significant fall in revenue. This list does not contain Maldives. America has topped the list with a loss of USD 30.7 billion. The report concludes that the world has globally experienced a loss of USD 195 billion.