Minister of Finance Ibrahim Ameer has stated the prices of goods are expected to rise again in the coming months.
Speaking at a press conference held at the President’s Office, Minister Ameer said prices of goods in the global market have increased significantly due to the Russia-Ukraine conflict, leading to an increase in prices of goods in the Maldives during the first four months of the year. The finance minister noted the price fluctuations in the global market have an immediate and direct impact on the Maldives, as the country imports most of its goods. He said prices of goods are expected to rise again during the coming months.
Speaking further, Minister Ameer noted total inflation has been controlled amid the rise in prices of goods, mainly due to the lower prices of communication services which were implemented last year. Noting the Maldives experienced an unprecedented economic setback in 2020 due to the COVID-19 pandemic, the minister said strong policies by the administration helped to record a strong economic recovery last year. He added the country is still on course to record a GDP growth between 13-16% this year.
Furthermore, the finance minister stated the administration plans to reduce the gross national expenditure to 6% of the GDP this year, with new policies enforced to reduce state expenditure. However, he said the administration has no plans to enforce pay cuts for government employees.