Maldives Development Update : Navigating Choppy Seas

Driven by a rebound in tourism, Maldives’ economy recovered sharply in 2021, and poverty is expected to return to pre-pandemic levels by 2023. In 2020, the outbreak of COVID-19 hit international travel and tourism severely and, thus, caused a 33.5...

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Main Author:	World Bank
Format:	Report
Language:	English en_US
Published:	Washington, DC : World Bank 2022
Subjects:	ECONOMIC GROWTH REAL SECTOR INFLATION POVERTY MONETARY POLICY FINANCIAL SECTOR EXTERNAL SECTOR FISCAL POLICY
Online Access:	http://documents.worldbank.org/curated/en/099240106152215221/P1774450f6c58a0140af4d0df92d59263c7 http://hdl.handle.net/10986/37662

id	okr-10986-37662
recordtype	oai_dc
spelling	okr-10986-376622022-07-09T05:10:42Z Maldives Development Update : Navigating Choppy Seas World Bank ECONOMIC GROWTH REAL SECTOR INFLATION POVERTY MONETARY POLICY FINANCIAL SECTOR EXTERNAL SECTOR FISCAL POLICY Driven by a rebound in tourism, Maldives’ economy recovered sharply in 2021, and poverty is expected to return to pre-pandemic levels by 2023. In 2020, the outbreak of COVID-19 hit international travel and tourism severely and, thus, caused a 33.5 percent contraction in Maldives’ GDP. However,following a successful nationwide government vaccination campaign, tourism has begun to recover strongly in the second half of 2021, with arrivalsreaching 1.3 million in 2021 or about 78 percent of prepandemic levels. As a result, GDP growth is estimated to have bounced back by 31 percent in 2021. All sectors, except for construction which remains sluggish, showed a significant rebound, particularly in the second quarter of 2021 due to the low base effect. The poverty rate, which rose sharply to 11 percent in 2020 due to the COVID-19 pandemic, is estimated to have fallen to 4 percent in 2021. External imbalances improved along with the economic recovery and rebound in tourism. While vulnerabilities remain, the fiscal and debtposition has likely improved in 2021 due to strong revenue growth. Although the economy is expected to grow strongly in the medium-term, the ongoing Russia-Ukraine war could impact Maldives’ tourism recovery and growth in the near term. The impact of the Russia-Ukraine war will depend on the period of interruption and whether tourists from other countries can compensate for the loss. 2022-07-08T17:43:45Z 2022-07-08T17:43:45Z 2022-04 Report http://documents.worldbank.org/curated/en/099240106152215221/P1774450f6c58a0140af4d0df92d59263c7 http://hdl.handle.net/10986/37662 English en_US Maldives Development Update; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC : World Bank Economic & Sector Work Economic & Sector Work :: Economic Updates and Modeling South Asia South Asia Maldives
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ECONOMIC GROWTH REAL SECTOR INFLATION POVERTY MONETARY POLICY FINANCIAL SECTOR EXTERNAL SECTOR FISCAL POLICY
spellingShingle	ECONOMIC GROWTH REAL SECTOR INFLATION POVERTY MONETARY POLICY FINANCIAL SECTOR EXTERNAL SECTOR FISCAL POLICY World Bank Maldives Development Update : Navigating Choppy Seas
geographic_facet	South Asia South Asia Maldives
relation	Maldives Development Update;
description	Driven by a rebound in tourism, Maldives’ economy recovered sharply in 2021, and poverty is expected to return to pre-pandemic levels by 2023. In 2020, the outbreak of COVID-19 hit international travel and tourism severely and, thus, caused a 33.5 percent contraction in Maldives’ GDP. However,following a successful nationwide government vaccination campaign, tourism has begun to recover strongly in the second half of 2021, with arrivalsreaching 1.3 million in 2021 or about 78 percent of prepandemic levels. As a result, GDP growth is estimated to have bounced back by 31 percent in 2021. All sectors, except for construction which remains sluggish, showed a significant rebound, particularly in the second quarter of 2021 due to the low base effect. The poverty rate, which rose sharply to 11 percent in 2020 due to the COVID-19 pandemic, is estimated to have fallen to 4 percent in 2021. External imbalances improved along with the economic recovery and rebound in tourism. While vulnerabilities remain, the fiscal and debtposition has likely improved in 2021 due to strong revenue growth. Although the economy is expected to grow strongly in the medium-term, the ongoing Russia-Ukraine war could impact Maldives’ tourism recovery and growth in the near term. The impact of the Russia-Ukraine war will depend on the period of interruption and whether tourists from other countries can compensate for the loss.
format	Report
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Maldives Development Update : Navigating Choppy Seas
title_short	Maldives Development Update : Navigating Choppy Seas
title_full	Maldives Development Update : Navigating Choppy Seas
title_fullStr	Maldives Development Update : Navigating Choppy Seas
title_full_unstemmed	Maldives Development Update : Navigating Choppy Seas
title_sort	maldives development update : navigating choppy seas
publisher	Washington, DC : World Bank
publishDate	2022
url	http://documents.worldbank.org/curated/en/099240106152215221/P1774450f6c58a0140af4d0df92d59263c7 http://hdl.handle.net/10986/37662
_version_	1764487621075009536

Maldives Development Update : Navigating Choppy Seas

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