MP for South Hulhumalé Dr. Ahmed Shamheed has raised serious concerns over the deteriorating economic condition of the Maldives, warning that the Maldives Monetary Authority’s (MMA) latest forecasts present a grim outlook for the country.
Speaking during Monday’s parliamentary debate on the National Payment System Amendment Bill, Dr. Shamheed said the economy is in a “very poor state” and highlighted troubling projections shared by both the MMA and Parliament's Finance Committee.
He noted that the latest MMA figures indicate a sharp decline in GDP, with estimates suggesting nearly a 50 percent drop in 2023 and 2024. While the government had earlier projected GDP growth of 6–7 percent for this year, current estimates place growth at just 4 to 4.5 percent.
Dr. Shamheed also pointed out that inflation, particularly food inflation, has surged to 8.5 percent this year, further burdening the public. He urged authorities to be transparent about the economic challenges, stating that he had personally requested the MMA Governor to disclose all relevant data to the public.
He further warned that the Maldives currently holds just $200 million in usable reserves, which includes a $400 million currency swap with India. If this amount is withdrawn in six months, usable reserves would fall into the negative, he cautioned.
Dr. Shamheed also questioned whether the country is in a position to meet its debt obligations next year, adding that he has yet to receive a satisfactory answer from the relevant authorities.
Speaking during Monday’s parliamentary debate on the National Payment System Amendment Bill, Dr. Shamheed said the economy is in a “very poor state” and highlighted troubling projections shared by both the MMA and Parliament's Finance Committee.
He noted that the latest MMA figures indicate a sharp decline in GDP, with estimates suggesting nearly a 50 percent drop in 2023 and 2024. While the government had earlier projected GDP growth of 6–7 percent for this year, current estimates place growth at just 4 to 4.5 percent.
Dr. Shamheed also pointed out that inflation, particularly food inflation, has surged to 8.5 percent this year, further burdening the public. He urged authorities to be transparent about the economic challenges, stating that he had personally requested the MMA Governor to disclose all relevant data to the public.
He further warned that the Maldives currently holds just $200 million in usable reserves, which includes a $400 million currency swap with India. If this amount is withdrawn in six months, usable reserves would fall into the negative, he cautioned.
Dr. Shamheed also questioned whether the country is in a position to meet its debt obligations next year, adding that he has yet to receive a satisfactory answer from the relevant authorities.
