The Maldives Monetary Authority (MMA) has released its Annual Report for 2024, offering a comprehensive snapshot of the country’s economic performance over the past year. The report shows that the Maldivian economy grew by 5.1% in 2024, up from 4.7% in 2023, with tourism once again emerging as the main driver of growth.
According to the report, the rise in tourist arrivals, exceeding 2 million for the first time, helped lift related sectors such as transportation, communication, and wholesale and retail trade. Resort bednights grew by 8%, offsetting an 18% drop in guesthouse stays. China reclaimed its position as the leading source market, alongside strong numbers from European countries such as Russia, the UK, and Germany.
The MMA report notes that inflation decelerated to an average of 1.4% in 2024, compared to 2.9% in 2023. This was mainly due to declining prices in information and communication services, and government discounts on utility bills during Ramadan. However, prices for food, tobacco, and restaurant services continued to rise.
On the fiscal side, the report highlights a 14.1% fiscal deficit, driven by increased recurrent expenditure and delayed expenditure consolidation. While tax revenues performed strongly—especially tourism-related taxes—capital spending declined. Public debt reached MVR 145 billion, or 133.5% of GDP, including guarantees.
The MMA also reported a marginal increase in gross international reserves, thanks in part to a US$400 million currency swap obtained from the Reserve Bank of India. The authority reduced the minimum reserve requirement on foreign currency deposits from 10% to 7.5% to ease pressure on the dollar supply.
The financial sector remained stable, with 4% growth in banking assets and improvements in profitability. Insurance and finance companies also showed healthy performance. The MMA introduced new regulatory frameworks, including the Foreign Currency Act and updated regulations for money changers.
Looking ahead, the MMA forecasts a 6.4% GDP growth rate for 2025, supported by tourism momentum and infrastructure upgrades, such as the new passenger terminal at Velana International Airport. However, the report warns of downside risks from global price volatility, geopolitical tensions, and delayed fiscal reforms.
The 2024 report also highlights MMA’s efforts to strengthen financial inclusion, promote Islamic finance, and invest in research and capacity-building across the institution.
