Maldives' GDP expected to expand next year : World Bank

Maldives' GDP growth is expected to reach 5.7 per cent next year, the World Bank has estimated.

In their latest report on South Asia, the World Bank said although a slow growth reaching 5.2 percent is estimated for 2019 due to a slowdown in construction following the completion of the international airport and a connecting bridge, it is expected pick up and reach 5.6 per cent next year with support from new infrastructure investment and the expansion of tourism.

In line with a global downward trend, growth in South Asia is projected to slow to 5.9 percent in 2019, which is a decline of 1.1 percentage points from April 2019 estimates, said the Bank.

The latest edition of the South Asia Economic Focus, 'Making (De)centralization Work', finds that strong domestic demand, which propped high growth in the past, has weakened, driving a slowdown across the region.

While imports have declined severely across South Asia, imports have declined between 15 and 20 percent in Pakistan and Sri Lanka, it said.

"In India, domestic demand has slipped, with private consumption growing 3.1 percent in the last quarter from 7.3 percent a year ago, while manufacturing growth plummeted to below 1 percent in the second quarter of 2019 compared to over 10 percent a year ago", the World Bank further said.