Biggest obstacle is lack of GDP growth opportunities: President

President Dr Mohamed Muizzu said that the biggest obstacle facing the Maldives and other Small Island Developing States (SIDS) at the moment is the lack of opportunities to increase gross domestic product (GDP).

Speaking at the Interactive Dialogue, "Revitalizing SIDS' Economies for Accelerated and Sustainable Growth," on the sidelines of the Fourth International Conference on Small Island Developing States (SIDS4) in Antigua and Barbuda, President Muizzu said that these countries have not realized their full potential due to low GDP rates.

"One thing that is common to almost all SIDS is that we have had to drastically increase productive and state capacity, which has also doubled as an obstacle to reaching our full potential," he said.

He said that additional opportunities should be easily available to these countries and attracting new investors should be facilitated. He also highlighted the need to provide an easy way to overcome major external shocks in the global economy.

President Dr Muizzu highlighted the need for accelerated and sustainable growth for SIDS to transition to middle-income status and develop further, and stressed on the critical need to build human capital and mobilize resources.

“SIDS need to strengthen their capacity building, partnerships, advocacy, and strategic planning,” he said.

Speaking about expanding productivity and training opportunities, the President noted that the Maldives has become a renowned brand in sustainable tourism due to the presence of highly skilled and trained locals in the industry.

President Muizzu added that Maldives can develop in other sectors besides tourism if it works towards this goal.

He said that progress is being made in Maldives' efforts towards disaster preparedness through establishing early warning systems.

However, President Muizzu said that financial assistance is critical, as these projects will be very costly. He noted that there is no easy way to secure financing for such initiatives.

"Over the last 10 years or so, we have seen in various international forums, such as the COP summit, the Paris Agreement, and the 2030 Climate Agenda, big promises of such aid. However, only a fraction of it is actually received," President Muizzu raised concern.

He reiterated that SIDS can achieve their Sustainable Development Goals only if they receive this assistance in its fullest sense.