The Edition


Maldives projects economy progress at 4.4 percent in 2017

Fathmath Shaahunaz
08 November 2016, MVT 15:49
Woman making a purchase at the local market in capital Male. FILE PHOTO: NISHAN ALI/MIHAARU
Fathmath Shaahunaz
08 November 2016, MVT 15:49

The Maldives government projects that the nation’s economy will progress by 4.4 percent next year.

Proposing the 2017 State Budget to the parliament on Tuesday, finance minister Ahmed Munawar stated that the country’s economic progress by the end of this year will be 3.9 percent. The majority of the progress he attributed to developments in the construction industry.

However, the minister noted that internal and external affairs had impacted the Maldives’ economy this year, such as the receding number of tourists from China to the archipelago due to changes in the Chinese economy and Britain’s exit from the European Union.

“Additionally, it saddens me to note the immoral acts against our tourism by some locals in alliance with foreign entities to defame the Maldives and turn tourists away from coming to the Maldives,” said the minister, referring to the opposition.

Nevertheless, the nation’s economy will pick up speed and spike by 4.7 percent, added the minister.

The Maldives’ economy:

Progress in 2016 is 3.9 percent

Progress in 2017 is estimated to be 4.4 percent

Inflation in 2016 is 0.4 percent

Inflation in 2017 is estimated to be 2.4 percent

Official reserves in 2016 at USD 536 million (MVR 8.2 billion)

Official reserves in 2017 at USD 605 million (MVR 9.2 billion)

Minister Munawar noted that the inflation this year dropped to 0.4 percent due to decrease in global prices. However, the inflation rate in the coming year is expected to reach 2.4 percent.

According to the minister, the official reserves by the end of 2016 is expected to be USD 536 million (MVR 8.2 billion) while it is projected to spike to USD 605 million (MVR 9.2 billion) in 2017.

The 2017 State Budget proposed to the parliament projects a revenue of MVR 21.9 billion, with MVR 14.1 billion from taxes, MVR 4.8 billion from other income, MVR 878 million from free financial aid and MVR 2 billion from proposed revenue generating projects. Meanwhile, next year’s deficit is estimated to be MVR 303.7 million, which is five percent of the Gross Domestic Product (GDP).