The International Monetary Fund (IMF) has stated that though the Maldivian economy is growing after the pandemic, challenges remain due to debt.
IMF stated this in its annual report on the economy of Maldives.
IMF said the government's measures have accelerated the post-COVID economic recovery. As such, the economy grew 37 percent last year after a 33.5 percent decline during the pandemic.
The report also said that while tourism is boosting the economy, it is also benefiting the transport and trade industries. And that the economy is expected to grow by 6.6 percent next year.
IMF said that despite rising inflation, prices have been kept stable by government subsidies. It was also added that inflation is expected to rise next year.
According to the IMF report, even though the economy is growing, debt is an existing challenge. The current account deficit is expected to reach 16.5 percent of the GDP this year. Therefore, it was noted that debt poses various challenges to the economy.
IMF described the opening of the Chinese market to the Maldives as a relief to the country due to the dollar shortage caused by global economic decline.
The IMF report also recommended subsidies to cover costs for those most in need of it and reforms to the way state-owned companies operate.
The International Monetary Fund has welcomed the decision to increase taxes in Maldives.
IMF stated this in its annual report on the economy of Maldives.
IMF said the government's measures have accelerated the post-COVID economic recovery. As such, the economy grew 37 percent last year after a 33.5 percent decline during the pandemic.
The report also said that while tourism is boosting the economy, it is also benefiting the transport and trade industries. And that the economy is expected to grow by 6.6 percent next year.
IMF said that despite rising inflation, prices have been kept stable by government subsidies. It was also added that inflation is expected to rise next year.
According to the IMF report, even though the economy is growing, debt is an existing challenge. The current account deficit is expected to reach 16.5 percent of the GDP this year. Therefore, it was noted that debt poses various challenges to the economy.
IMF described the opening of the Chinese market to the Maldives as a relief to the country due to the dollar shortage caused by global economic decline.
The IMF report also recommended subsidies to cover costs for those most in need of it and reforms to the way state-owned companies operate.
The International Monetary Fund has welcomed the decision to increase taxes in Maldives.
