The International Monetary Fund (IMF) has commended the Maldivian government for its stance in addressing economic challenges and enhancing its financial standing.
The statement was conveyed through a press release following an IMF mission's visit to the Maldives from January 23 to February 6, aimed at evaluating the country's economic sector. The press release encapsulates key insights raised during the assessment.
In the press release, IMF stated that the Maldives' economy expanded by 4.4% last year and is anticipated to grow by 5.2% in the current year, buoyed by an increase in tourist arrivals. The IMF also predicts benefits to the economy from the ongoing Velana International Airport (VIA) development project, which is set to increase tourist facilities. However, the IMF underscores the fragility of the economy, emphasising the exigency of prompt actions.
Additionally, the IMF highlights the necessity for policy reforms aimed at curbing debt and fiscal deficits, particularly in light of anticipated increases in fuel prices and import expenditures, compounded by recurrent weather-related disasters such as floods.
Furthermore, the IMF emphasises the imperative of reforming state-owned enterprises (SOEs) to alleviate strain on public finances. The IMF mission observed that the government is poised to implement measures to enhance the Maldives' financial sector, including revisions to subsidies and the national health insurance scheme, Aasandha. Given the Maldives' vulnerability to climate change and associated disasters, the IMF underscores the importance of collaborative efforts by relevant institutions to preemptively address these challenges.
During the visit, the IMF mission held discussions with Governor of the Maldives Monetary Authority (MMA) Ali Hashim and Minister of Finance Mohamed Shafeeq, in addition to engagements with private enterprises and companies involved in pivotal economic ventures.