Minister of Economic Development and Trade Mohamed Saeed has stated that the Maldives' economy is projected to grow by 5.5% this year, as the government strives to bolster the nation's weakening economic conditions. His statement is in line with predictions from international financial institutions, showing a positive outlook for the Maldives' economy.
Minister Saeed highlighted the challenging economic landscape inherited by President Dr. Mohamed Muizzu, emphasising a significant increase in state debt and outstanding payments. He, however, assured that the government is addressing the issues by prioritising debt repayment and settling overdue bills.
Under the government's initiatives to revitalise the economy, Minister Saeed affirmed that efforts are underway, leading to the anticipated growth rate of 5.5% for the current fiscal year. He also noted the accumulation of foreign currency in the Sovereign Development Fund (SDF) alongside measures aimed at fostering economic growth.
The fiscal policies of the previous administration resulted in a notable economic slowdown and a surge in national debt over the past half-decade. Despite the challenges, international financial institutions remain optimistic about the Maldives' prospects, foreseeing improvements in its financial health and economic resilience.
Both the International Monetary Fund (IMF) and the World Bank have expressed confidence in the Maldivian economy, with the IMF predicting an increase in tourist arrivals and endorsing projects like the Velana International Airport (VIA) development, expected to bolster tourism infrastructure and contribute to economic growth. The World Bank delegation further affirmed its unwavering support for the Maldives' development initiatives.