Maldives economy to grow 3.9 percent next year: World Bank

World Bank has forecast that Maldives’ economy will grow by 3.9 percent next year, slightly lower than the projected growth for this year.

In its latest economic update, the World Bank said the Maldivian economy is expected to grow by 4.2 percent in 2025. This means the growth forecast for next year is 0.3 percentage points lower.

According to the World Bank, the slowdown is largely due to weaker growth across several sectors. While service industries; particularly tourism, are expected to continue driving growth, other sectors are projected to expand at a slower pace.

The service sector is forecast to grow by 4.2 percent next year, while the agriculture sector is expected to grow by three percent. Other sectors of the are projected to grow by 1.9 percent.

Finance Ministry has projected economic growth of 5.3 percent in the budget for next year.

Inflation is forecast to stand at 4.2 percent next year, down 0.4 percentage points from this year.

The fiscal deficit is projected at 13 percent of gross domestic product (GDP), while public debt is expected to reach 134 percent of GDP.