Minister of Finance Ibrahim Ameer has stated the Maldivian economy is not expected to fully recover from the impact of the COVID-19 pandemic until 2022.
The finance minister stated the impact of COVID-19 on the tourism industry has taken a massive hit on the economy, which cannot be recovered before the number of tourist arrivals return to the same level as it was before the pandemic. Noting 1.6 million tourist arrivals were recorded in 2019, the minister noted the figure can realistically be achieved again in 2022. Therefore, he said the economy is not expected to fully recover until 2022.
Speaking further, the finance minister noted the government is preparing to launch many important projects such as the relocation of the port to Gulhifalhu and the construction of the Greater Male’ Connectivity Bridge. In addition, the minister noted several PSIP projects will also be launched very soon, including water and sewerage projects in 34 islands. He said the projects will help to increase economic activity and speed up the recovery process.
GDP growth of the Maldives was recorded at 5.7% in 2019, and was initially projected to grow 7.5% this year. However, following the COVID-19 pandemic, GDP is now expected to drop 17% this year.
Although the government initially planned to record 2 million tourist arrivals this year, the tourism industry suffered massive losses due to closing of borders amid the COVID-19 pandemic. After closing the borders for more than 3 months, Maldives reopened its borders for tourists on July 15.