Central bank projects stable economic growth in Maldives

Local fishermen carry their day's catch to the fish market for sale. (File Photo/Sun/Fayaz Moosa)

Central bank, Maldives Monetary Authority (MMA) projects Maldives will be able to sustain its current real economic growth rate throughout the current year.

MMA announced its projection in its economic bulletin for the second quarter.

It said that the trajectory of economic growth over the first half of the year favored against the possibility of an economic slowdown.

It said that the growth in the tourism industry as well as retail and commerce minimized the possibility of a drop in gross domestic product (GDP).

It took particular note of tourist arrivals from several source markets which have exceeded projections – leading to an overall improvement in tourist arrivals and an economic boost.

MMA also took note of a slowdown in the construction industry which it attributed to a drop in public infrastructure development projects. It noted that three mega infrastructure development projects were completed in 2018 and that no infrastructure development projects were initiated in the beginning of 2019.

MMA also projects against any fluctuations in the inflation rate which it attributed to measures imposed by the government to control the prices of staple foods and electricity through subsidies.

It projects the fiscal debt to drop to 4.4 percent by the end of 2019 – 0.4 percent less than the 4.8 percent it had been at, at the end of 2018.

Meanwhile, the ratio of public debt to GDP is projected to rise to 62.6 percent by the end of the year.