The Maldives Monetary Authority (MMA) has revealed that the Maldivian economy is growing at a good pace despite the global economic slowdown due to the COVID-19 pandemic.
As per the Quarterly Economic Bulletin report published by MMA, the Maldives estimated a 12.3% growth in the economy by the end of this year and the economy is expected to return to pre-COVID levels. MMA said the country's economy is growing mainly due to the growth in tourism. The bed nights increased by 33% in the first three quarters of the year, according to MMA. The authority also expects the tourism sector to grow further by 2023.
Additionally, the central bank said that the inflation rate stood at 2.9% in the second quarter of this year. As such, MMA expects inflation to average 2.2% for the rest of the year despite rising commodity prices. Inflation is expected to reach 5.4% next year due to the government's decision to increase the Goods and Services Tax (GST) and the Tourism Goods and Services Tax (TGST), changes in the subsidy regime, and the further rise in world commodity prices, according to the report.
Minister of Finance Ibrahim Ameer has also said that the economy of the Maldives is growing at a faster pace than the world economy. Presenting the government's budget for next year, Minister Ameer said the economy will recover to pre-COVID-19 levels by next year. He also said that the efforts made to overcome the COVID-19 pandemic have enhanced the capacity of the health sector in the country and made it a world-successful country in testing and vaccination.