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Financial institutions trust Maldives, Finance Minister

Mohamed Rehan
01 August 2022, MVT 11:59
(FILE) Minister of Finance Ibrahim Ameer: he has stated the endorsement of both IMF and World Bank indicate their support for the government's strategies for economic sustainability-- Photo: Mihaaru
Mohamed Rehan
01 August 2022, MVT 11:59

Maldives' Minister of Finance Ibrahim Ameer said on Sunday that support from both the International Monetary Fund (IMF) and World Bank over the government's decision to hike the GST and Travel GST indicate their confidence in the island nation's economic stability.

The minister highlighted this via tweet, noting the endorsement of both IMF and World Bank were encouraging for the state in its efforts.

Minister confirms of effective strategies to reduce state expenditure while boosting revenues under the fiscal strategy for the period 2023 to 2025.

Ameer stressed on the importance of state's fiscal strategy for a sustainable economy of the island nation.

Objectives under the strategy include reducing the dependency of state-owned enterprises on state expenditure, while ensuring government expense stability.

State relies on the opinion and recommendations of both IMF and World Bank in its efforts to redeem outdated fiscal policies, and the overall improvement of economic aspects.

IMF in its economic outlook for the Maldives projects the global economy will impact Maldives' economy as well, owing to the rising commodity prices in global markets.

The international financial body projects Maldives inflation rate to hike by three percent.

Maldives inflation in annual terms stayed between 0.5-1.5 percent during past two years, while a significant hike in the Consumer Price Index (CPI) will reflect on household expenses.

IMF further projects economic impact for a two-year period due to the ongoing Russia-Ukraine war.