IMF Report Forecasts 5% Growth for Maldives Economy, Aligning with Other Developing Nations

The International Monetary Fund (IMF) projects a 5% growth in the Maldives’ economy for this year, following an 8.1% increase last year, as detailed in its Global Economic Outlook.

 

 

 

In its latest Global Economic Outlook, the International Monetary Fund (IMF) has forecasted a promising 5% growth for the Maldives’ economy this year, following a robust expansion of 8.1% in the previous year. This positive trend places the Maldives on par with the economic growth trajectories of other developing countries, including Sri Lanka, which is anticipated to grow by 4.8%.

 

Contrasting these figures, the Maldives Monetary Authority (MMA), the nation’s central bank, predicts an even higher growth rate of 5.5% for 2024. The current Maldivian administration is more optimistic, projecting a 6.7% economic surge.

 

The IMF report also outlines expectations for inflation in the Maldives to decrease to 2.4% this year, while the current account balance is projected to improve, albeit remaining in deficit at minus 13% — highlighting the nation’s dependency on imports.

 

Regionally, India is slated for the most significant growth at 6.3%, with Bangladesh and Nepal expected to see their economies expand by 6% and 5%, respectively. These forecasts underscore the diverse economic dynamics within the region.

 

Globally, economic growth is expected to slow to 2.9% in 2024 from 3% last year, with developed economies anticipated to grow by approximately 1.4%. The report highlights a gradual recovery from the pandemic-induced economic downturn, with global inflation projected to decrease to 5.8% this year, marking a 1.1% reduction from the previous year.

 

The IMF’s projections for the Maldives and the broader global economy underscore the ongoing recovery efforts from the COVID-19 pandemic, signalling cautious optimism for the future.

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