The monthly economic review of Maldives Monetary Authority (MMA) has shown the Maldivian economy is estimated to maintain a solid growth of 6% in 2018, following a robust growth of 6.9% in 2017.
While the strong domestic demand, underpinned by the continued buoyancy in the construction sector, is projected to provide further stimulus for economic growth, the favourable condition in the tourism sector is also expected to firm up in 2018, according to MMA. The central bank stated the fiscal deficit is projected to increase to 3% of GDP this year from a revised 2% of GDP in 2017.
Meanwhile, the current account deficit is projected to contract further to 18% of GDP in 2018 from an estimated 22% of GDP in 2017 as major infrastructure spending starts to winds down, according to the balance of payments forecasts of October 2017.