Economic overview Maldives, in 36 editions.

The economy is based on fishing, tourism, and shipping. Agriculture is limited to the production of a few subsistence crops that provide only 10% of food requirements. Fishing is the largest industry, employing 80% 25% of the work force and accounting for over 60% of exports; it is also an important source of government revenue. During the 1980s tourism has become one of the most important and highest growth sectors of the economy. In 1988 industry accounted for about 14% 5% of GDP. Real GDP is officially estimated to have increased by about 10% annually during the period 1974-86, 1974-87, and GDP estimates for 1988 show a further growth of 9% on the strength of a record fish catch and an improved tourist season.

The economy is based on fishing, tourism, and shipping. Agriculture is
limited to the production of a few subsistence crops that provide only 10%
of food requirements. Fishing is the largest industry, employing 25% of the
work force and accounting for over 60% of exports; it is also an important
source of government revenue. During the 1980s tourism has become one of the
most important and highest growth sectors of the economy. In 1988 industry
accounted for about 5% of GDP. Real GDP is officially estimated to have
increased by about 10% annually during the period 1974-87, and GDP estimates for 1988 show a further growth of 9% on the strength of a record fish catch and an improved tourist season. 1974-90.

The economy is based on fishing, tourism, and shipping. Agriculture is
limited to the production of a few subsistence crops that provide only 10%
of food requirements. Fishing is the largest industry, employing 25% of the
work force and accounting for over 60% of exports; it is also an important
source of government revenue. During the 1980s tourism has become became one of the
most important and highest growth sectors of the economy. In 1988 industry
accounted for about 5% of GDP. Real GDP is officially estimated to have
increased by about 10% annually during the period 1974-90.

The economy is based on fishing, tourism, and shipping. Agriculture is
limited to the production of a few subsistence crops that provide only 10%
10% of food requirements. Fishing is the largest industry, employing
25% of the
work force and accounting for over 60% of exports; it is
also an important
source of government revenue. During the 1980s
tourism became one of the
most important and highest growth sectors of
the economy. In 1988 industry
accounted for about 5% of GDP. Real GDP
is officially estimated to have
increased by about 10% annually during
the period 1974-90.

Fishing is the largest industry, employing 25% of the work
force and accounting for over 60% of exports. Over 90% of government
tax revenue comes from import duties and tourism-related taxes. During
the 1980s tourism became one of the most
important and highest growth
sectors of the economy. In 1993, tourism 1994,
tourism, Maldives largest industry, accounted for 17% about 18% of GDP and
and more than 60% of the Maldives' foreign exchange receipts.
Fishing is a second leading growth sector. Over 90% of government
tax revenue comes from import duties and tourism-related taxes. The
Maldivian government Government initiated an economic reform program in 1989
initially by lifting import quotas and opening some exports to the
private sector. Subsequently, it has liberalized regulations to allow
allow more foreign investment. Agriculture and manufacturing
continue to
play a minor role in the economy, constrained by the limited
limited availability of cultivatable cultivable land and the shortage of domestic labor.
labor. Most staple foods must be imported. In 1993, 1994, industry which consisted
consisted mainly of garment production, boat building, and
handicrafts accounted
for about 6% 15% of GDP.

During the 1980s tourism became one of the most
important and highest growth sectors of the economy. In 1994,
tourism,
Maldives largest industry, accounted for about 18% of GDP
and more
than 60% of the Maldives' foreign exchange receipts.
Fishing is a
second leading growth sector. Over 90% of government
tax revenue comes
from import duties and tourism-related taxes. The
Maldivian Government
initiated an economic reform program in 1989
initially by lifting
import quotas and opening some exports to the
private sector.
Subsequently, it has liberalized regulations to
allow more foreign
investment. Agriculture and manufacturing
continue to play a minor
role in the economy, constrained by the
limited availability of
cultivable land and the shortage of domestic
labor. Most staple foods
must be imported. In 1994, industry which
consisted mainly of garment
production, boat building, and
handicrafts accounted for about 15% of
GDP.

During the 1980s tourism became one of the most
important and highest growth sectors of the economy. In 1994, tourism,
Tourism, Maldives largest industry, accounted accounts for
about 18% of GDP and more
than 60% of the Maldives' foreign exchange receipts. Fishing is a
second leading growth sector. receipts. Over 90% of government tax revenue comes
from import duties
and tourism-related taxes. About 350,000 tourists visited the islands
in 1997. Fishing is a second leading growth sector. The Maldivian Government
initiated Government began an economic reform program in 1989 initially by lifting
lifting import quotas and opening some exports to the private sector.
Subsequently, it has liberalized regulations to allow more foreign
investment. Agriculture and manufacturing continue to play a minor
role in the economy, constrained by the limited availability of
cultivable land and the shortage of domestic labor. Most staple foods
must be imported. In 1994, industry Industry, which consisted consists mainly of garment
production, boat building, and handicrafts accounted handicrafts, accounts for about 15% of
GDP. Maldivian authorities worry about the impact of erosion and
possible global warming on their low-lying country; 80% of the area is
three feet or less above sea level.

Tourism, Maldives largest industry, accounts for
for about 18% of GDP and more than 60% of the Maldives' foreign exchange
exchange receipts. Over 90% of government tax revenue comes from
import duties
and tourism-related taxes. About 350,000 tourists
visited the islands
in 1997. Fishing is a second leading growth
sector. The Maldivian
Government began an economic reform program in
1989 initially by
lifting import quotas and opening some exports to
the private sector.
Subsequently, it has liberalized regulations to
allow more foreign
investment. Agriculture and manufacturing
continue to play a minor
role in the economy, constrained by the
limited availability of
cultivable land and the shortage of domestic
labor. Most staple foods
must be imported. Industry, which consists
mainly of garment
production, boat building, and handicrafts,
accounts for about 15% of
GDP. Maldivian authorities worry about the
impact of erosion and
possible global warming on their low-lying
country; 80% of the area is
three feet one meter or less above sea level.

Tourism, Maldives largest industry, accounts
for about 18% 20% of GDP and more than 60% of the Maldives' foreign
exchange receipts. Over 90% of government tax revenue comes from
import duties and tourism-related taxes. About 350,000 Almost 400,000 tourists
visited the islands in 1997. 1998. Fishing is a second leading growth
sector. The Maldivian Government began an economic reform program in
1989 initially by lifting import quotas and opening some exports to
the private sector. Subsequently, it has liberalized regulations to
allow more foreign investment. Agriculture and manufacturing
continue to play a minor role in the economy, constrained by the
limited availability of cultivable land and the shortage of domestic
labor. Most staple foods must be imported. Industry, which consists
mainly of garment production, boat building, and handicrafts,
accounts for about 15% 18% of GDP. Maldivian authorities worry about the
impact of erosion and possible global warming on their low-lying
country; 80% of the area is one meter or less above sea level.

Tourism, Maldives largest industry, accounts for 20% of GDP and more than 60% of the Maldives' foreign exchange receipts. Over 90% of government tax revenue comes from import duties and tourism-related taxes. Almost 400,000 tourists visited the islands in 1998. Fishing is a second leading sector. The Maldivian Government began an economic reform program in 1989 initially by lifting import quotas and opening some exports to the private sector. Subsequently, it has liberalized regulations to allow more foreign investment. Agriculture and manufacturing continue to play a minor lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor. Most staple foods must be imported. Industry, which consists mainly of garment production, boat building, and handicrafts, accounts for about 18% of GDP. Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is one meter or less above sea level.

Tourism, Maldives Maldives' largest industry, accounts for 20% of GDP and more than 60% of the Maldives' foreign exchange receipts. Over 90% of government tax revenue comes from import duties and tourism-related taxes. Almost 400,000 tourists visited the islands in 1998. Fishing is a second leading sector. The Maldivian Government began an economic reform program in 1989 initially by lifting import quotas and opening some exports to the private sector. Subsequently, it has liberalized regulations to allow more foreign investment. Agriculture and manufacturing continue to play a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor. Most staple foods must be imported. Industry, which consists mainly of garment production, boat building, and handicrafts, accounts for about 18% of GDP. Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is one meter or less above sea level.

Tourism, Maldives' largest industry, accounts for 20% of GDP and more than 60% of the Maldives' foreign exchange receipts. Over 90% of government tax revenue comes from import duties and tourism-related taxes. Fishing is a second leading sector. The Maldivian Government began an economic reform program in 1989 initially by lifting import quotas and opening some exports to the private sector. Subsequently, it has liberalized regulations to allow more foreign investment. Agriculture and manufacturing continue to play a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor. Most staple foods must be imported. Industry, which consists mainly of garment production, boat building, and handicrafts, accounts for about 18% of GDP. Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is one meter or less above sea level. In late December 2004, a major tsunami left more than 100 dead, 12,000 displaced, and property damage exceeding $300 million.

Tourism, Maldives' largest industry, accounts for 20% of GDP and more than 60% of the Maldives' foreign exchange receipts. Over 90% of government tax revenue comes from import duties and tourism-related taxes. Fishing is a second leading sector. The Maldivian Government began an economic reform program in 1989 initially by lifting import quotas and opening some exports to the private sector. Subsequently, it has liberalized regulations to allow more foreign investment. Agriculture and manufacturing continue to play a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor. Most staple foods must be imported. Industry, which consists mainly of garment production, boat building, and handicrafts, accounts for about 18% of GDP. Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is one meter or less above sea level. In late December 2004, a major tsunami left more than 100 dead, 12,000 displaced, and property damage exceeding $300 million. Over the past decade, real GDP growth averaged over 7.5% per year. As a result of the tsunami, the GDP contracted by about 5.5% in 2005.

Tourism, Maldives' largest industry, accounts for 20% 28% of GDP and more than 60% of the Maldives' foreign exchange receipts. Over 90% of government tax revenue comes from import duties and tourism-related taxes. Fishing is a the second leading sector. The Maldivian Government began an economic reform program in 1989 initially by lifting import quotas and opening some exports to the private sector. Subsequently, it has liberalized regulations to allow more foreign investment. Agriculture and manufacturing continue to play a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor. Most staple foods must be imported. Industry, which consists mainly of garment production, boat building, and handicrafts, accounts for about 18% 7% of GDP. The Maldivian authorities worry about the impact of erosion Government began an economic reform program in 1989 initially by lifting import quotas and possible global warming on their low-lying country; 80% of opening some exports to the area is one meter or less above sea level. private sector. Subsequently, it has liberalized regulations to allow more foreign investment. Real GDP growth averaged over 7.5% per year for more than a decade. In late December 2004, a major tsunami left more than 100 dead, 12,000 displaced, and property damage exceeding $300 million. Over the past decade, real GDP growth averaged over 7.5% per year. As a result of the tsunami, the GDP contracted by about 5.5% 3.6% in 2005. A rebound in tourism, post-tsunami reconstruction, and development of new resorts helped boost GDP by about 18 percent in 2006. The trade deficit has expanded sharply as a result of high oil prices and imports of construction material. Diversifying beyond tourism and fishing is the major challenge facing the government. Over the longer term Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is one meter or less above sea level.

Tourism, Maldives' largest industry, accounts for 28% of GDP and more than 60% of the Maldives' foreign exchange receipts. Over 90% of government tax revenue comes from import duties and tourism-related taxes. Fishing is the second leading sector. Agriculture and manufacturing continue to play a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor. Most staple foods must be imported. Industry, which consists mainly of garment production, boat building, and handicrafts, accounts for about 7% of GDP. The Maldivian Government began an economic reform program in 1989 initially by lifting import quotas and opening some exports to the private sector. Subsequently, it has liberalized regulations to allow more foreign investment. Real GDP growth averaged over 7.5% per year for more than a decade. In late December 2004, a major tsunami left more than 100 dead, 12,000 displaced, and property damage exceeding $300 million. As a result of the tsunami, the GDP contracted by about 3.6% in 2005. A rebound in tourism, post-tsunami reconstruction, and development of new resorts helped boost GDP by about 18 percent in 2006. the economy recover quickly. The trade deficit has expanded sharply as a result of high oil prices and imports of construction material. Diversifying beyond tourism and fishing is and increasing employment are the major challenge challenges facing the government. Over the longer term Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is one 1 meter or less above sea level.

Tourism, Maldives' largest industry, accounts for 28% of GDP and more than 60% of the Maldives' foreign exchange receipts. Over 90% of government tax revenue comes from import duties and tourism-related taxes. Fishing is the second leading sector. Agriculture and manufacturing continue to play a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor. Most staple foods must be imported. Industry, which consists mainly of garment production, boat building, and handicrafts, accounts for about 7% of GDP. The Maldivian Government began an economic reform program in 1989 initially by lifting import quotas and opening some exports to the private sector. Subsequently, it has liberalized regulations to allow more foreign investment. Real GDP growth averaged over 7.5% per year for more than a decade. In late December 2004, a major tsunami left more than 100 dead, 12,000 displaced, and property damage exceeding $300 million. As a result of the tsunami, the GDP contracted by about 3.6% 4.6% in 2005. A rebound in tourism, post-tsunami reconstruction, and development of new resorts helped the economy recover quickly. quickly, with GDP growth registering 18% in 2006. Growth slowed in 2007-08, but remained above 5% per year. The trade deficit has expanded sharply as a result of high oil prices and imports of construction material. Government spending on social needs, subsidies, and civil servant salaries have created a large budget deficit and inflation has picked up sharply, reaching nearly 13% in October 2008 due to high oil and food prices. Diversifying beyond tourism and fishing fishing, reforming public finance, and increasing employment are the major challenges facing the government. Over the longer term Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is 1 meter or less above sea level.

Tourism, Maldives' largest industry, economic activity, accounts for 28% of GDP and more than 60% of foreign exchange receipts. Over 90% of government tax revenue comes from import duties and tourism-related taxes. Fishing is the second leading sector. Agriculture and manufacturing continue to play a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor. Most staple foods must be imported. Industry, which consists mainly of garment production, boat building, and handicrafts, accounts for about 7% of GDP. The Maldivian Government began an implemented economic reform program reforms, beginning in 1989 that initially by lifting lifted import quotas and opening quotas, opened some exports to the private sector. Subsequently, it has sector, and liberalized regulations to allow more foreign investment. Real GDP growth averaged over 7.5% per year for more than a decade. In late December 2004, a major tsunami left more than 100 dead, 12,000 displaced, decade, and property damage exceeding $300 million. As a result of the tsunami, the GDP contracted by about 4.6% registered 18% in 2005. A 2006, due to a rebound in tourism, post-tsunami reconstruction, tourism and development of new resorts helped reconstruction following the economy recover quickly, with tsunami of December 2004. GDP growth registering 18% in 2006. Growth slowed in 2007-08, but remained above 5% per year. The trade deficit expanded sharply as a result of high oil prices then contracted in 2009 due to the global recession. Falling tourist arrivals and imports of construction material. Government fish exports, combined with high government spending on social needs, subsidies, and civil servant salaries have created a large budget deficit and inflation has picked up sharply, reaching nearly 13% in October 2008 due contributed to high oil and food prices. a balance of payments crisis, which was eased with a December 2009, $79.3 million dollar IMF standby agreement. Diversifying the economy beyond tourism and fishing, reforming public finance, and increasing employment opportunities are the major challenges facing the government. Over the longer term Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is 1 meter or less above sea level.

Tourism, Maldives' largest economic activity, accounts for 28% of GDP and more than 60% of foreign exchange receipts. Over 90% of government tax revenue comes from import duties and tourism-related taxes. Fishing is the second leading sector. sector, but the fish catch has dropped sharply in recent years. Agriculture and manufacturing continue to play a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor. Most staple foods must be imported. The Maldivian Government implemented economic reforms, beginning in 1989 that initially lifted import quotas, opened some exports to In the private sector, and liberalized regulations to allow more foreign investment. Real last decade, real GDP growth averaged over 7.5% around 6% per year except for more than a decade, 2005, when GDP declined following the Indian Ocean tsunami, and registered 18% in 2006, due to a rebound in tourism 2009, when GDP shrank by 3% as tourist arrivals declined and reconstruction following capital flows plunged in the tsunami wake of December 2004. GDP slowed in 2007-08, then contracted in 2009 due to the global recession. financial crisis. Falling tourist arrivals and fish exports, combined with high government spending on social needs, subsidies, and civil servant salaries contributed to a balance of payments crisis, which was eased with a December 2009, $79.3 million dollar IMF standby agreement. However, after the first two disbursements, the IMF withheld subsequent disbursements due to concerns over Maldives' growing budget deficit. Maldives has had chronic budget deficits in recent years and the government's plans to cut expenditures have not progressed well. A new Goods and Services Tax on Tourism (GST) was introduced in January 2011 and a new Business Profit Tax is to be introduced during the year. These taxes are expected to increase government revenue by about 25%. The government has privatized the main airport and is partially privatizing the energy sector. Tourism will remain the engine of the economy. The Government of the Maldives has aggressively promoted building new island resorts. Due to increasing tourist arrivals, the government expects GDP growth around 4.0% in 2011. Diversifying the economy beyond tourism and fishing, reforming public finance, and increasing employment opportunities are major challenges facing the government. Over the longer term Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is 1 meter or less above sea level.

Tourism, Maldives' largest economic activity, accounts for 28% 30% of GDP and more than 60% of foreign exchange receipts. Over 90% of government tax revenue comes from import duties and tourism-related taxes. Fishing is the second leading sector, but the fish catch has dropped sharply in recent years. Agriculture and manufacturing continue to play a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor. Most staple foods must be imported. In the last decade, real GDP growth averaged around 6% per year except for 2005, when GDP declined following the Indian Ocean tsunami, and in 2009, when GDP shrank by 3% as tourist arrivals declined and capital flows plunged in the wake of the global financial crisis. Falling tourist arrivals and fish exports, combined with high government spending on social needs, subsidies, and civil servant salaries contributed to a balance of payments crisis, which was temporarily eased with a December 2009, $79.3 million dollar IMF standby agreement. However, after the first two disbursements, the IMF withheld subsequent disbursements due to concerns over Maldives' growing budget deficit. Maldives has had chronic budget deficits in recent years deficit, and the government's plans to cut expenditures have not progressed well. government has been seeking other sources of budgetary support ever since. A new Goods and Services Tax on Tourism (GST) was on tourism introduced in January 2011 and a new Business Profit Tax is to be introduced during the year. These taxes are expected in 2012 have provided a boost to increase government revenue by about 25%. The government has privatized the main airport and is partially privatizing the energy sector. Tourism will remain the engine of the economy. The Government of the Maldives has aggressively promoted building new island resorts. Due revenue. Economic growth slowed to increasing tourist arrivals, the government expects 3.5% of GDP growth around 4.0% in 2011. 2012, compared to 5.8% in 2011 because of slower tourist arrivals and weak global conditions. Diversifying the economy beyond tourism and fishing, reforming public finance, and increasing employment opportunities are major near-term challenges facing the government. Over the longer term Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is 1 meter or less above sea level.

Tourism, Maldives' largest economic activity, accounts for 30% 28% of GDP and more than 60% of foreign exchange receipts. Fishing is the second leading sector, but the fish catch has dropped sharply in recent years. Agriculture and manufacturing continue to play a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor. Falling Lower than expected tourist arrivals and fish exports, combined with high government spending on social needs, subsidies, and civil servant salaries contributed to a balance of payments crisis, which was temporarily eased with a $79.3 million IMF standby Stand-By agreement. However, after the first two disbursements, the IMF withheld subsequent disbursements due to concerns over Maldives' growing budget deficit, and the government has been seeking other sources of budgetary support ever since. A new Goods and Services Tax (GST) on tourism introduced in January 2011 2011, on general goods and services in October 2011, and a new Business Profit Tax introduced in 2012 July 2011 have provided a boost to revenue. Economic growth slowed to 3.5% 3.4% of GDP in 2012, compared to 5.8% 7.0% in 2011 because of slower tourist arrivals and weak global conditions. Diversifying the economy beyond tourism and fishing, reforming public finance, and increasing employment opportunities opportunities, and combating corruption, cronyism, and a growing drug problem are major near-term challenges facing the government. Gross foreign reserves at the end of November 2012 were approximately $356 million, compared with $326 million in 2011, and were sufficient to finance only 2.6 months of imports. Over the longer term Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is 1 meter or less above sea level.

Tourism, Maldives' largest economic activity, accounts for 28% nearly 30% of GDP and more than 60% of foreign exchange receipts. Fishing is the second leading sector, but the fish catch has dropped sharply in recent years. Agriculture and manufacturing continue to play a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor. Lower than expected tourist arrivals and fish exports, combined with high government spending on social needs, subsidies, and civil servant salaries contributed to a balance of payments crisis, which was temporarily eased with a $79.3 million IMF Stand-By agreement. However, after the first two disbursements, the IMF withheld subsequent disbursements due to concerns over Maldives' growing budget deficit, and the government has been seeking other sources of budgetary support ever since. A new Goods and Services Tax (GST) on tourism introduced in January 2011, on general goods and services in October 2011, and a new Business Profit Tax introduced in July 2011 have provided a boost to revenue. Economic growth slowed In recent years, gross foreign reserves have hovered around $300 million, sufficient to 3.4% of GDP in 2012, compared finance about two to 7.0% in 2011 because three months of slower tourist arrivals and weak global conditions. imports. Diversifying the economy beyond tourism and fishing, reforming public finance, increasing employment opportunities, and combating corruption, cronyism, and a growing drug problem are major other near-term challenges facing the government. Gross foreign reserves at the end of November 2012 were approximately $356 million, compared with $326 million in 2011, and were sufficient to finance only 2.6 months of imports. Over the longer term Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is 1 meter or less above sea level.

Tourism, Maldives' largest economic activity, accounts for nearly 30% of GDP and more than 60% of foreign exchange receipts. Fishing is the second leading sector, but the fish catch has dropped sharply in recent years. Agriculture and manufacturing continue to play a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor.
Lower than expected tourist arrivals and fish exports, combined with high government spending on social needs, subsidies, and civil servant salaries contributed to a balance of payments crisis, which was temporarily eased with a $79.3 million IMF Stand-By agreement. However, after the first two disbursements, the IMF withheld subsequent disbursements due to concerns over Maldives' growing budget deficit, and the government has been seeking other sources of budgetary support ever since. A new Goods and Services Tax (GST) on tourism introduced in January 2011, on general goods and services in October 2011, and a new Business Profit Tax introduced in July 2011 have provided a boost to revenue. In recent years, gross foreign exchange reserves have hovered around $300 million, sufficient to finance about two to three months of imports.
In August 2014 the Maldives’ Parliament passed a bill to create special economic zones, a step aimed at attracting investment and diversifying the economy away from tourism and fishing. The Maldives’ also took some steps to reduce the fiscal deficit in 2015, such as imposing a green tax on tourist establishments and raising import duties, but the deficit will grow because of increasing public expenditures.
Diversifying the economy beyond tourism and fishing, reforming public finance, increasing employment opportunities, and combating corruption, cronyism, and a growing drug problem are other near-term challenges facing the government. Over the longer term Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is 1 meter or less above sea level.

Maldives has rapidly grown into quickly become a middle-income country, driven by the rapid growth of its tourism development. In 2015, and fisheries sectors, but the economy’s country still contends with a large and growing fiscal deficit. Economic growth slowed to 4.8%, 2.8% in 2015, mainly due to lower tourism sector growth as tourist arrivals because of a decline in tourists from China declined. However, the slowdown is expected to reverse in 2016. Tourism, construction, transport, and the communications sector accounted for 50% of the output on average. Tourism-related Russia. Despite lower growth, tourism-related tax receipts increased by 13% in 2015 due to because of higher tax rates. This increase in dollar tax receipts directly led to higher usable foreign exchange reserves in 2015. The current account deficit widened to $400 million in 2015 due to that helped partially fund increases in construction related imports. A large and growing fiscal deficit remains an ongoing economic challenge.
In July 2015, Maldives’ Parliament passed a constitutional amendment legalizing foreign ownership of land; foreign land-buyers must reclaim at least 70% of the desired land from the ocean and invest at least $1 billion in a construction project approved by Parliament.
Diversifying the economy beyond tourism and fishing, reforming public finance, increasing employment opportunities, and combating corruption, cronyism, and a growing drug problem are near-term challenges facing the government. Over the longer term term, Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is 1 meter or less above sea level.

Maldives has quickly become a middle-income country, driven by the rapid growth of its tourism and fisheries sectors, but the country still contends with a large and growing fiscal deficit. Economic growth slowed Infrastructure projects, largely funded by China, could add significantly to 2.8% in 2015, mainly because debt levels. Political turmoil and the declaration of a decline in tourists from China and Russia. Despite lower growth, tourism-related tax receipts increased by 13% in 2015 because state of higher tax rates. This increase emergency in tax receipts February 2018 led to higher usable foreign exchange reserves that helped partially fund increases the issuance of travel warnings by several countries whose citizens visit Maldives in construction related imports.
significant numbers, but the overall impact on tourism revenue was unclear. In 2015, Maldives’ Parliament passed a constitutional amendment legalizing foreign ownership of land; foreign land-buyers must reclaim at least 70% of the desired land from the ocean and invest at least $1 billion in a construction project approved by Parliament.
Diversifying the economy beyond tourism and fishing, reforming public finance, increasing employment opportunities, and combating corruption, cronyism, and a growing drug problem are near-term challenges facing the government. Over the longer term, Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is 1 meter or less above sea level.

Maldives has quickly become a middle-income country, driven by the rapid growth of its tourism and fisheries sectors, but the country still contends with a large and growing fiscal deficit. Infrastructure projects, largely funded by China, could add significantly to debt levels. Political turmoil and the declaration of a state of emergency in February 2018 led to the issuance of travel warnings by several countries whose citizens visit Maldives in significant numbers, but the overall impact on tourism revenue was unclear.
In 2015, Maldives’ Parliament passed a constitutional amendment legalizing foreign ownership of land; foreign land-buyers must reclaim at least 70% of the desired land from the ocean and invest at least $1 billion in a construction project approved by Parliament.
Diversifying the economy beyond tourism and fishing, reforming public finance, increasing employment opportunities, and combating corruption, cronyism, and a growing drug problem are near-term challenges facing the government. Over the longer term, Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is 1 meter or less above sea level.