The growth of the tourism sector has played a paramount role in maintaining the economic momentum of the Maldives, the International Monetary Fund stated, robustly sustaining broader economic activities despite severe financial challenges. Disclosing details on priority policies following a 4 to 14 June visit by an Article IV Mission delegation, the IMF outlined tourism's critical role in securing foreign currency amid global uncertainty, noting that Middle East conflict spillovers actively exert negative impacts domestically.
"Over the past year, the Maldivian economy has navigated a challenging macroeconomic and financial environment with improved resilience," Piyaporn Sodsriwiboon, the delegation leader, said. "A sizable fiscal consolidation effort through both revenue mobilization and expenditure controls was undertaken in 2025, which helped contain financing pressures."
Sodsriwiboon noted that weaker tourism and higher energy prices would slow 2026 gross domestic product growth to 1 per cent, though a recovery to 4 per cent is expected by 2027. "Downside risks dominate," she continued, adding that debt risks remain high and "the current account deficit would also widen further." Longer term, "supply-side reforms to remove structural bottlenecks to growth, strengthen human capital and improve climate resilience are priorities."
Bilateral free trade agreements advanced external demand, Sodsriwiboon said, while "integrating climate sensitivity into public financial and investment management processes would be essential" for unlocking climate financing. The institution firmly advised continuing stability measures, recommending that officials protect vulnerable segments of society while implementing necessary fiscal adjustments.