The World Bank has revealed that the rate of inflation in the Maldives is low compared to other countries due to government subsidies.
The economies of South Asia are expected to slow down due to the current economic challenges facing the world, according to the World Bank's Global Economic Prospects report. The World Bank predicts that economic growth will slow from 11% to 7.1%. In the report, the World Bank stated the change was made due to the impact the Russia-Ukraine conflict will have on the global economy and the effect it will have on tourist arrivals to the region. The World Bank said the Russian invasion of Ukraine has magnified the slowdown in the global economy, which is entering what could become a protracted period of feeble growth and elevated inflation.
The World Bank report said the Maldives, like other South Asian countries, will face inflation or rising prices. However, the World Bank noted that inflation in the Maldives has been maintained at 1% compared to other countries in the region due to government subsidies. The government has said the tourism industry of the Maldives is currently in good shape and therefore expects the economy to remain stable.