The World Bank has stated that Maldives is the fastest-growing economy in South Asia.
Maldives Development Update (MDU) of the World Bank stated that the growth in tourism in the country is having a positive impact on the real estate, transport, and trade industries. The economy grew by 12.3% due to the growth in these industries, according to the report. The tourism sector accounts for one-third of the economy and has reached its pre-COVID level. The main reason for the growth is the increase in tourist arrivals from India, Russia, and Gulf countries.
The report noted that inflation increased by an average of 2.3% last year due to rising commodity prices. Areas where prices rose included food, healthcare, and restaurant services. The report also noted that the tax rate changes in the Maldives will improve the public finances.
The report forecast a 7.1% growth in the economy in 2023 compared to the same period last year, with increased growth from tourism. The report also said the Maldives will break its record by attracting 1.8 million tourists by the end of the year. The development of new resorts and the Velana International Airport (VIA) will boost the tourism sector, according to the World Bank.