The World Bank has stated that the economy of the Maldives is expected to grow by 6% on average in the medium term and is supported by a robust tourism performance.
In the South Asia Economic Focus Report, the World Bank highlighted the current state of the economy, challenges, and progress. The World Bank stated that the economy of the Maldives has recovered to pre-pandemic levels. The report also said that the Maldives will be able to sustain economic growth with the rapid growth of the tourism industry.
The World Bank stated that the number of tourists from Russia is increasing, despite the expected impact of the Russian-Ukrainian war. The report said that the economy did not show a decline in tourist arrivals from China and Europe in recent days as tourist arrivals from India and the Middle East increased. In addition, development projects are underway at a fast pace, which is boosting the construction industry and expanding the tourism industry in the Maldives, the report said.
The World Bank stated the economy of the Maldives is expected to grow by 6% in the medium term and is supported by a robust tourism performance. The tourism industry is also expected to grow by 7.1% this year as the Maldives opens up to the Chinese market and increases tourist arrivals from India and Russia. In addition, the new runway at Velana International Airport (VIA) and new resorts will bring further developments to the tourism industry, according to the report.
The World Bank noted that the government bears the financial burden of many development projects. The World Bank also recommended that government subsidies be arranged through a more robust system to reduce government expenditure on fuel, free health care, and medicine. The World Bank and other international financial institutions are also noting that the economy of the Maldives is making significant progress after the COVID-19 pandemic.