Financial statistics has shown the official reserve of the Maldives last year was higher than the average reserve amount.
Statistics of Maldives Monetary Authority (MMA) showed the State Reserve or Usable Reserve averaged over USD 800 million last year which is more than the usable reserve in general. It was an increase compared to the USD 753 million in the State Reserve in December 2019.
The State Reserve is based on the income and other economic activities of the Maldives. The reserve has been increasing steadily over the past three years. The government has also made several efforts to maintain the official reserve during the COVID-19 situation.
Presenting the State Budget 2022, Minister of Finance Ibrahim Ameer also noted the State Reserve has increased to a record high in the past two years. In this regard, the minister said the official State Reserve increased to USD 984 million by the end of 2020 despite the decrease in imports due to COVID-19. He expressed it was the positive outcome of measures taken by the government to prepare for the economic crisis during the import drop.
Moreover, the State Reserve also increased to a record high in September 2021. The reserve stood at USD 1.02 billion in September which is the highest reserve in recent years, according to financial statistics.
International financial institutions have predicted the reserve will grow significantly this year as the tourism sector continues to grow. Therefore, experts say the reserve of the Maldives will not decrease further as hundreds of thousands of advance bookings are being made by those who wish to visit the Maldives.
In addition to economic experts, the World Bank and the International Monetary Fund (IMF) noted the economy of the Maldives is one of the fastest-growing economies in a country after COVID-19. IMF has estimated the number of countries that will see economic growth in Asia in 2022. As such, Maldives is ranked as the second-fastest growing country in the world with 13.21%. Other neighbouring countries are lagging behind the Maldives on the list.