The World Bank has lowered the estimated economic growth of Maldives for 2026 from 3.9 percent to 0.7 percent.
In October 2025, the World Bank estimated that the economic growth of Maldives would be at 3.9 percent. However, upon review in April 2026, that estimate may drop by 3.2 percent.
The World Bank has estimated that Maldives would see the lowest economic growth this year when looking at other South Asian countries.
The World Bank estimates this drop due to increased fuel prices because of the ongoing war in the Middle East, the decrease in tourists to Maldives and because of the loss of revenue in the tourism industry.
According to the World Bank's estimates, the inflation rate for 2026 will rise to six percent in connection to the war. They also estimate that during such a time, current accounts and budget deficits will rise exponentially, with pressure mounting on foreign currencies.
While Maldives is at the bottom, the World Bank's estimates show that India will see the most economic growth at 7.6 percent, which is a 1.1 percent increase from October 2025's forecast. Bhutan is in second, with an estimated economic growth of 7.1 percent.
Estimated economic growth rates of South Asian countries
- India: 7.6 percent
- Bhutan: 7.1 percent
- Bangladesh: 3.9 percent
- Sri Lanka: 3.6 percent
- Nepal: 2.3 percent
- Maldives: 0.7 percent
The total economic growth rate of South Asia as a whole is estimated to be 6.3 percent by the World Bank.
The World Bank stated that Maldives experienced an economic growth of 5.7 percent in 2025. Maldives was third in the South Asian countries with the largest economic growth.
