News

GDP to accelerate to 7.5% in 2020

Maldives Monetary Authority (MMA) has estimated the annual real Gross Domestic Product (GDP) will accelerate to 7.5% in 2020.

According to statistics published by MMA, the GDP in 2020 will accelerate 1.8% compared to last year. Based on revised estimates made by the MMA and the Ministry of Finance last October, annual real GDP growth is projected to moderate to 5.7% in 2019, down from 6.8% projected in October 2018.

MMA stated the moderation of growth in 2019 stems mainly from the construction sector slowdown, which reflects the completion of several large-scale infrastructure projects of the government in 2018 and also delayed commencement of new public sector infrastructure projects budgeted for 2019.

MMA revealed last year that growth is anticipated to be driven by tourism and related sectors such as transport, communication and wholesale and retail trade.

Meanwhile, the acceleration of growth in 2020 is projected on the back of strong tourism sector performance as well as a pickup in construction sector growth due higher expenditure on public sector investment projects budgeted for the year by the administration.