MMA has forecasted the Maldives economy to grow by 5.5 percent, while the government, in the state budget, has projected an economic growth of 6.7 percent for this year.
The International Monetary Fund (IMF) has predicted that the Maldives' economy will grow by five percent this year.
According to the IMF's Global Economic Outlook, the economy of developing countries, including the Maldives, is expected to grow by an average of 4.8 percent.
IMF states the economy grew by 8.1 percent last year. Hence, the economic growth forecast for the current fiscal year has been revised down by 3.3 percent.
The central bank, Maldives Monetary Authority (MMA), forecasts the economy to grow by 5.5 percent this year. In the state budget, the government has projected an economic growth of 6.7 percent for this year.
According to the IMF report, the country's inflation rate is predicted to decline to 2.4 percent this year. The country's current account balance will remain at minus 13 percent. This is a three percent decrease compared to last year. The current account balance reflects the gap between imports and exports in the country. The current account balance is always at minus percent as the Maldives' economy is dependent on imports.
Among the countries in the region, India's economy is predicted to have the highest growth at 6.3 percent. Bangladesh's economy is expected to grow by 6 percent, while Nepal's economy is expected to grow by 5 percent.
According to the report, the global economy is expected to grow by 2.9 percent this year. Over the last three years, the global economy has experienced a slowdown. Last year, the global economy grew by three percent, while the economy in developed countries is expected to grow at 1.4 percent.
The IMF forecasts global inflation to remain at 5.8 percent this year, which is 1.1 percent lower than the inflation rate last year. The IMF notes that the global economy is recovering slowly from the collapse caused by the Covid-19 pandemic.
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