Maldives Development Update, June 2020 : In Stormy Seas
Following three consecutive years of growth above 6 percent, the Maldivian economy kept momentum in 2019. Preliminary estimates indicate that real GDP decelerated slightly to 5.3 percent, from 6.9 percent in the previous year. Tourist arrivals reac...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/336011591808041663/Maldives-Development-Update-In-Stormy-Seas http://hdl.handle.net/10986/33904 |
| Summary: | Following three consecutive years of
growth above 6 percent, the Maldivian economy kept momentum
in 2019. Preliminary estimates indicate that real GDP
decelerated slightly to 5.3 percent, from 6.9 percent in the
previous year. Tourist arrivals reached a record high of 1.7
million, a 14.7 percent increase from 2018. Strong tourism
growth compensated for softer construction activity, which
grew by only 3.1 percent as many large infrastructure
projects were completed in late 2018. This marked the
slowest rate of construction growth since the public
investment boom began in 2014. The global pandemic caused by
the novel coronavirus (COVID-19) has impacted the Maldives’
economy more than any other country in South Asia. Although
the Government acted quickly to protect lives, barring
incoming travelers from affected areas as early as February
3 and closing its borders on March 27, a substantial
domestic outbreak commenced on April 15. As this report is
being written, nearly 2,000 people have tested positive for
COVID-19 and 8 have lost their lives to the disease. The
real toll of the pandemic, however, is much higher, with
thousands of livelihoods affected by the shutdown of
tourism. Tourist arrivals fell by 11.1 and 63.4 percent
year-on-year (y-on-y) in February and March respectively and
remained at zero for the entire second quarter.
Cumulatively, the 65 percent y-on-y fall in tourist arrivals
from February-May 2020 exceeds the decline in tourist
arrivals experienced in the four months after the 2004
Indian Ocean tsunami. Construction has also been affected,
as half the COVID-19 cases affect Bangladeshi nationals,
many of whom work in the sector, and as external financing
has dried up. |
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