The Edition


Average income falls from 10k to 6k

Nafaahath Ibrahim
11 January 2021, MVT 17:26
Maldives Monetary Authority Building in Male'. PHOTO/MOHAMED SHARUHAN/MIHAARU
Nafaahath Ibrahim
11 January 2021, MVT 17:26

Following the demise in economy due to COVID-19, the average income per person falls from USD 10000 to USD 6000 in Maldives.

This notable decline was the result of the country’s economy coming to halt and GDP dropping to -27 percent with the ongoing global pandemic.

However, since the economy has started to slowly climb up following the reopening of tourism, Maldives Monetary Authority (MMA) predicts that by end of this year, average income will rise to USD 7500.

Maldives' revenue was on the rise from 2015 till 2019, with an increase from USD 63 billion to USD 86 billion in that period.

But due to the economic decline in 2019, it dropped to USD 57 billion.

GDP is a metric that breaks down a country's economic output per person. It is calculated by dividing the GDP of the country by its population.

As COVID-19 spread globally, many countries including Maldives closed borders. The restrictions on local and global travel and tourism as a result of the COVID-19 pandemic had severe repercussions on the Maldivian economy, with many losing their jobs and local companies struggling to stay afloat.

In mid-April 2020, the World Bank estimated that Maldives will be the worst-hit country in the South Asian region, in the ensuing economic regression caused by the pandemic.