Minister says Maldives economy different from global forecasts
The country's economy is expected to grow at 7.6% in 2023.
By
Ahmed Mizyal
Finance minister Ibrahim Ameer said on Monday that while the International Monetary Fund (IMF) has taken a stunted view of the global economy, the Maldives’ economy is a different story altogether.
Ameer presented the budget in the parliament on Monday:
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Total budget is MVR 42.68 billion
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Revenue and grants are estimated at MVR 32 billion
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Budget deficit will stand at MVR 8.4 billion in 2023
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This is a deficit of 8.1% in terms of productivity or GDP
While presenting the budget, Ameer said that the IMF views the global economy with a sense of uncertainty and low confidence. He said the Maldives' economy is growing at a faster pace than the global economy’s growth rate.
"The IMF expects the global economy to grow at 2.7% next year," the minister said.
In the budget presented on Monday, the government has projected that the country's economy will surpass pre-Covid levels in the next financial year. The country's economy is expected to grow at 7.6% in 2023.
This country's economy is a different story. In managing the country's economy, efforts can be made to maintain the pulse of the country's economy and boost tourism and other industries.
Noting that inflation rates in many countries are rising and in some countries are rising to levels never seen before, the minister said the US and UK are raising interest rates to a level that they have not done in recent times to tame inflation.
"This kind of strategy adopted by developed countries has led to a lot of challenges for developing countries. Oil and energy importing countries are also facing more hurdles due to rising oil and energy prices," the minister said.
Maldives is expected to receive 1.8 million tourists in 2023. It's going to be a year with more visitors, more than even 2019, breaking tourism records, - a promising year.
The minister said that such strategies are causing the slow recovery from the pandemic-caused recession.
"However, this country's economy is a different story. In managing the country's economy, efforts can be made to maintain the pulse of the country's economy and boost tourism and other industries," the minister said.
"We are confident that if we manage the risks to the country's economy and sustain the growth of the economy, we will be able to sustain the economic stability of the country, the growth of industries and the prosperity of the people."
Sharing his outlook for the next year on individual industries, Ameer said that 2023 will be a promising year for tourism.
"Maldives is expected to receive 1.8 million tourists in 2023. It's going to be a year with more visitors, more than even 2019, breaking tourism records; it's going to be a promising year," Ameer said.
The minister also predicted that the transport and communication sectors associated with the tourism sector would also see growth next year. While similar expectations were pinned on the country's wholesale and retail business, the minister added that the construction sector would grow in 2023 aided by state-funded projects and private sector projects.
The minister also said that with the industrial and economic growth, the number of jobs generated in the country's labour market will see an increase too.
"The number of employees registered with the country's pension office has increased by 10% as compared to the corresponding period in 2021. In 2023, jobs are expected to increase with the country's economic growth," Ameer said.
