Maldives to See Progress Over Time

The current infrastructure development projects in the Maldives has the potential to transform the economy over time, but the rapid buildup of debt leaves the country vulnerable, says International Monetary Fund. IMF made the observation in its report on the Maldivian economy, based on its visit to the country this year, sun.mv reported. IMF said the airport development project, the bridge project and the water and sanitation projects in the Maldives will increase the influx of tourists into the country, boosting Maldivian tourism industry, as well as the housing and construction industry. Meanwhile, IMF also noted the rise in national debt due to the loans taken to undertake the development projects, which will have a negative impact on the country’s foreign reserve. It said the public debt as a share of GDP rose nearly 11.5 percentage points from 2014 to 2016. IMF noted that the GDP of the country increased between the years 2015 to 2016. The real GDP of the country stood at 3.3% in 2015 and rose to 3.9% in 2016, while the inflation rate remained constant.