The World Bank has adjusted its outlook for the Maldives' GDP growth this year. The revision was made in light of tourists choosing local guesthouses over luxury resorts.
The World Bank's "South Asia Development Update April 2024" report noted the Maldives experienced a 12 percent increase in tourist arrivals in 2023 compared to the previous year, totaling 1.88 million visitors. However, this surge had little effect on GDP growth due to changes in tourist spending habits.
"The output growth in Maldives is expected to be 4.7% in 2024, a half-percentage point downgrade from previous forecasts as tourists shift from high-end resorts toward lower-cost guesthouses," it read.
The World Bank estimates Maldives' GDP to grow by 5.2 percent next year, and by 4.1 percent in 2026.
