Maldives' economy grew at 13.9% in 2022, central bank says
According to the MMA report, the country's current account deficit is 17% of GDP. Prior to that, the current account deficit in 2021 stood at 8%.
By
Aishath Fareeha Abdulla
The Maldives' economy grew at 13.9% last year, according to a report released by the Maldives Monetary Authority (MMA) on Wednesday.
The central bank on Wednesday released its annual report for 2022. According to the report, the country's economy recovered to pre-Covid levels last year.
MMA's report points out that the economy grew by 13.9% by the end of 2022, a 1.6% increase from October projections for what the country's GDP was projected to be at the end of last year.
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The growth came on the back of a boom in the tourism sector
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The country's domestic economy also witnessed a boom last year; flight operation capacity improved with easing travel restrictions and opening of a new runway at Velana International Airport (VIA)
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Other tourism-related sectors also witnessed growth during the same period
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The construction sector also witnessed growth last year; the sector's performance picked up last year
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The report also noted that the fisheries sector has also grown
As per the report:
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The country's inflation rate stood at 2.3% last year
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Inflation stood at 0.5% in 2021
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Inflation soared due to supply chain disruptions in the wake of the Russia-Ukraine war and Covid-19 restrictions in China
The central bank noted that growth in the fiscal or financial sector has been driven by an increase in government revenues last year. The report points out that:
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Fiscal deficit narrowed to 11.9% of GDP
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The tourism sector boomed and the state's revenue surged with tax revenues and non-tax revenues from the sector
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The additional revenue measures approved and other initiatives introduced led to an increase in the state's revenue last year
According to the MMA, the financial sector was strong at the end of last year. The profitability and assets of banks as well as the profitability ratio and capital buffers are at a satisfactory level, the MMA said.
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Non-performing loans and losses associated with those loans were also at a satisfactory level
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The insurance sector also observed growth
According to the MMA report, the country's current account deficit is 17% of GDP. Prior to that, the current account deficit in 2021 stood at 8%.
The reasons for the increase in current account deficit are cited in the report as follows:
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The rise in import costs due to volatility in global commodity prices
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High external debt
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At the end of last year, the country's balance of payments stood at USD 22.5 million
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The country's total reserves stood at USD 827.7 million
