Maldives : 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Maldives

International Monetary Fund. Asia and Pacific Dept

Publication Date:

December 1, 2017

Electronic Access:

Free Full Text (PDF file size is 2605 KB).Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Maldives’ economic growth has been highly volatile, driven primarily by a high-end tourism industry. The economy improved marginally in 2016–17 on a recovery in tourism and construction but continues to face large and growing fiscal and external imbalances. Going forward, Maldives’ main challenge is to manage a surge in infrastructure investment which has the potential of transforming the economy but also creating risks from high and rising public debt. The rapid debt buildup, a widening current account deficit, and low international reserves leave the Maldives inherently vulnerable under this constellation of risks and reduced policy space.

Country Report No. 17/357