Report by: Shifneen Rasheed & Daha Shuaib
The year 2016 was a year of ups and downs for the Maldivian economy. While some sectors experienced lackluster growth within the year, developments in other major sectors such as the construction sector were impressive. According to the quarterly GDP statistics for the first two quarters of 2016, the overall performance of the economy looked robust with an average growth of 5.4%. However, tourism sector growth, which accounts for the lion’s share of the country’s economic growth fell below expectations owing to weaknesses in the global economy. Despite this, growth was largely propelled by a robust expansion in the construction sector.
Over the past two years, the performance of the tourism sector has been less than ideal, with arrival growth experiencing a loss of momentum. This was amid weak global economic conditions, resulting from the slowdown in the Chinese economy, the persistent economic recession in Russia and uncertain conditions in the euro area economies. Tourist arrivals to the country grew at a mere 2.4% during 2015, down from 7.1% the previous year. Annual bednights growth dipped to -4.3% with a reduction in average duration of stay by the tourists.
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Source URL: Corporate Maldives