International Monetary Fund (IMF) has stated that growth and development are expected on the main economical sectors of the Maldives.
A press release by the IMF stated that strong investments are expected in the tourism and construction sector.
After researching the Maldivian economy, IMF stated that although the inflation rates are high, real GDP growth is expected to remain strong at 6.5%. The GDP Growth in 2018 was at 7.5%.
IMF further stated that the high current account deficit can be decreased with the increased public infrastructure investments and new resort developments undertaken by the government. However, even with the policies of the new government, the fiscal deficit is projected to remain elevated, forecasts IMF, although successful implementation of tax reforms and improved tax administration may narrow both fiscal and current account deficits.
IMF recommended the government to further reform state-owned enterprises.
While commending the Sovereign Development Fund (SDF) established by the government for debt management, the IMF also noted that the assistance of central bank Maldives Monetary Authority (MMA) is vital in monitoring and managing the fund.
