The International Monetary Fund (IMF) has released a promising outlook for the Maldivian economy, forecasting a growth rate of 5.2 percent despite a decline in inflation since January this year. In a recent statement, the IMF highlighted key trends shaping the country's economic landscape and outlined measures to sustain this growth momentum.
According to the IMF, the Maldives has witnessed a notable decrease in inflation, primarily attributed to falling food prices in recent months. In January, inflation stood at 0.9 percent, marking a significant decline from previous levels. The IMF projects further reductions, with inflation expected to reach 3.8 percent following subsidy reforms. By 2025, inflation is forecasted to fall to three percent, signaling a positive trend in price stability.
In tandem with declining inflation, the IMF anticipates robust economic growth for the Maldives, with a projected expansion of 5.2 percent in the near future. The completion of infrastructure projects such as Velana International Airport is expected to drive this growth, facilitating an influx of tourists to the island nation.
While acknowledging the positive impact of the government's economic policies, the IMF also underscored the need for continued improvements. While significant strides have been made, there remain areas where further enhancements are warranted to ensure sustainable economic development.
Addressing the country's debt situation, the IMF emphasized the importance of implementing robust debt management measures. Given the challenges posed by external debt, the IMF stressed the need for proactive measures to facilitate timely debt repayment within the legal framework.
According to the IMF, the Maldives has witnessed a notable decrease in inflation, primarily attributed to falling food prices in recent months. In January, inflation stood at 0.9 percent, marking a significant decline from previous levels. The IMF projects further reductions, with inflation expected to reach 3.8 percent following subsidy reforms. By 2025, inflation is forecasted to fall to three percent, signaling a positive trend in price stability.
In tandem with declining inflation, the IMF anticipates robust economic growth for the Maldives, with a projected expansion of 5.2 percent in the near future. The completion of infrastructure projects such as Velana International Airport is expected to drive this growth, facilitating an influx of tourists to the island nation.
While acknowledging the positive impact of the government's economic policies, the IMF also underscored the need for continued improvements. While significant strides have been made, there remain areas where further enhancements are warranted to ensure sustainable economic development.
Addressing the country's debt situation, the IMF emphasized the importance of implementing robust debt management measures. Given the challenges posed by external debt, the IMF stressed the need for proactive measures to facilitate timely debt repayment within the legal framework.
