Finance Minister estimates 5.3 percent economic growth for next year

Minister of Finance Moosa Zameer today stated that the Maldives economy is projected to grow by 5.3 percent next year.

The government submitted a proposed budget of MVR 64.2 billion to the Parliament today for the coming year. This amount is approximately MVR 8 billion more than this year's budget.

Presenting the budget's summary, Zameer said that while the economic growth for the next year is estimated at 5.3 percent, the average economic growth for the subsequent two years is projected to be 4.9 percent.

The Minister projected that with the operationalization of the new Velana International Airport (VIA) terminal and the advancements made in regional airports, the number of tourist arrivals to the Maldives will increase next year and in the medium term. This, in turn, is expected to drive growth in the tourism sector and related industries.

However, the Minister did not state a specific target number for tourist arrivals next year.

In the first eight months of this year, 1.5 million tourists visited the Maldives, marking a 9.4 percent increase compared to the same period last year.

Based on the projected expenditure for government Public Sector Investment Projects (PSIP) next year and in the medium term, the construction and real estate sectors are projected to grow by an average of 3.1 percent annually.

Total government revenue for the coming year is projected to be MVR 40.2 billion. Finance Minister Zameer noted that the biggest difference in next year's revenue compared to this year is the exclusion of grants.