Maldives Monetary Authority (MMA) has projected the economic growth of the country to be lower than the previous year.
Executive Director at Monetary Policy and Research Statistics of MMA Ahmed Imad said the economy of the country will be low this year compared to the previous year, adding however, it will not be a major drop. In this regard, Ahmed Imad expressed the GDP forecast for 2018 will be low. Imad noted the economy is expected to drop as the growth in the construction sector will not be huge as much since many infrastructural projects are nearing completion. He projected the revenue from tourism sector will rise significantly this year compared to 2018.
According to estimates of October 2018, the Maldivian economy maintained its robust growth trajectory during 2018 with real GDP growth accelerating to 7.6%. This is higher than the initial growth forecast of 6% for 2018 and the 6.9% growth recorded in 2017. The better-than-expected performance in 2018 was predominantly driven by the exceptional performance of the tourism sector on the back of strong global demand and increased air connectivity.
In 2018, growth was also bolstered by strong activity in wholesale and retail trade and construction investment led by the mega infrastructure projects of the government and strong bank credit growth to the private sector.
Following better-than-expected growth in 2018, the overall outlook for the Maldivian economy remains positive.