Maldives real GDP to grow by 4.3 percent this year: MMA

Maldives Monetary Authority (MMA) forecast has shown that Maldives real GDP is projected to grow by 4.3 percent in 2013.

In its economic review released last Thursday, the authority stated that the 4.3 percent increase in real GDP will be attributed to growth of the tourism sector and related sectors such as transport, communication and wholesale and retail trade.

The authority also stated that according to the government budget 2013, total revenue (including grants) is projected to increase to MVR12,608.9 million, while total expenditure (including net lending) is projected to decline to MVR13,973.0 million. As a result, the authority predicts an overall deficit to decline to MVR1,364.1 million, which is equivalent to 4 per cent of GDP.

The economic review also stated that as per the latest government cash flow statement, the overall fiscal deficit of the government worsened during Jan-Nov 2012 compared to the same period of 2011, and that the total investment in Treasury bills (T-bills) increased in both monthly and annual terms during December 2012.

According to the balance of payments estimates for 2013, the current account deficit is estimated to increase to MVR690.7 million, equivalent to 28 per cent of GDP.

Tourist arrivals rose during 2012 as compared to 2011. Other indicators of the tourism sector registered declines during the period. The monetary base increased on both a monthly and annual basis at the end of December 2012.