Maldives forecasts 5.5% economic growth in 2024
Next year will be the first time since 2020 that Maldives' economic growth will be below the long-run average trend.
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Maldivian economy is expected to grow at 5.5% next year, according to the proposed state budget for 2024.
According to the finance ministry's budget, next year will be the first time since 2020 that Maldives' economic growth will be below the long-run average trend.
The budget forecasts a slowdown in the economy and says tourist arrivals from European countries are not expected to increase next year.
While tourism and transportation play the largest role in the economy, the number of tourists from Europe has increased in the past two years, but the trend is not expected to continue next year, the budget says.
With that, tourism's contribution to GDP growth is expected to slow down.
According to the budget:
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The economy is now forecast to grow by 8.7% by the end of the year
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This is more than the average economic growth rate in the long run
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In the medium term, the economy is expected to grow at an average of 6.7%
The World Bank forecasts Maldives' economy to grow at 6.5 percent of GDP by the end of this year. The development bank forecasts the economy to grow at an average of 5.4% over the next two years.
