President Ibrahim Mohamed Solih has stated the economic growth of the Maldives will be higher than expected this year. He made the statement while delivering the Presidential Address at the Parliament of the Maldives.
Delivering the address, President Solih echoed positive forecasts by the International Monetary Fund (IMF) that the Maldives would be among the top five fastest-growing economies in 2022. President Solih also shared the administration's vision of increasing the country's Gross Domestic Product (GDP) by 12% and attracting over 1.6 million visitors this year.
He noted the national economy slumped by an estimated 33.5% in 2020 compared to the previous year following the COVID-19 pandemic, which was the largest downfall since economic record-keeping began in the country. However, he said positive results were seen last year with the administration's swift and effective measures, including surpassing the one million target of tourist arrivals by attracting over 1.3 million travellers. He added GDP in 2021 is expected to be between 31.6% and 38.5%, which is higher than the forecast made by the IMF and World Bank.
Furthermore, President Solih said the Maldives received a foreign currency swap of USD250 million in July 2019 from the Reserve Bank of India to manage the state reserve. He said the amount was repaid in December 2021, and that USD447 million in debt incurred by the previous government was paid off last year, adding that the state reserve stood at USD791.2 million at the end of 2021.
President Solih went on to speak extensively about the implementation of the minimum wage and how it has had a positive effect on the lives of thousands of individuals in all economic sectors. He also extended his confidence in the administration's healthy economic policies in managing debt and added that 2023 would be the year the national economy will reach pre-pandemic levels.