Maldivian economy projected to grow by 12 percent this year

Central Bank of Maldives, Maldives Monetary Authority (MMA) has projected that Maldives' economic growth will be at 12 percent in 2022.

According to MMA's annual report, the Maldivian economy will return to pre covid-19 situation next year. The Maldivian economy grew by 37 percent in 2021.

MMA said that most of the economic growth this year will be due to the tourism sector as well. However, due to the ongoing war between Ukraine and Russia, tourist arrivals from that region will be lower compared to previous years. MMA therefore predicts that the number of tourist arrivals this year will be lower than that of 2019.

Maldives recorded 1.7 million tourist arrivals in 2019. Tourism Ministry aims to attract 2 million tourists this year.

MMA said that the price of commodities in Maldives will increase significantly this year as the economy grows. This is mainly due to the rise in the prices of goods in the international market and the increase in oil prices. They said that this is one of the biggest challenges the Maldivian economy will face.

Statistics published by the World Bank show that Maldivian GDP will grow by 10 percent next year. However, the economy is expected to be affected by the ongoing unrest in several countries.