The World Bank has named the Maldives as the fastest-growing economy in South Asia, according to the latest Maldives Development Update (MDU) released by the bank.
The report predicts that the Maldivian economy will continue to remain strong in the coming years, citing an increase in tourist arrivals, capital expenditure, and private expenditure as the main reasons for the strong growth. As per the World Bank's estimate, the number of poor in the Maldives is also expected to fall to pre-COVID-19 levels.
Speaking at the launch of the MDU at the Maldives National University (MNU) on Sunday, Deputy Finance Minister Mariyam Manarath highlighted the government's strong fiscal reform policies and assured that the government would prioritize the most vulnerable people of the society through these reforms to achieve financial sustainability.
Manarath also spoke about the importance of investing in projects that will transform the economy. She mentioned the Ihavandhippolhu port and the integrated tourism project of Hankede.
At the MDU launch, Finance Ministry's Chief Financial Budget Executive Ahmed Saruvash shared the government's efforts to strengthen the national health insurance scheme, Aasandha.
According to Saruvash, the initial target for revenue-side consolidation is three percent. However, he noted that tourism growth has exceeded expectations.
Saruvash further emphasized on the importance of preparing for the increase in the number of elderly people in the Maldives with the current trends in population changes.
