The International Monetary Fund (IMF) has warned that the country's financial situation is likely to worsen in the coming days.
An IMF mission, led by Piyaporn Sodsriwiboon, visited Malé from February 3 to February to discuss recent economic developments, the outlook, and the country’s policy priorities in the context of the 2025 Article IV consultation.
In a statement at the end of the mission, Sodsriwiboon said "there is large uncertainty around the forecasts and risks are tilted to the downside."
The IMF forecasts real GDP growth at five percent this year while the opening of the new airport terminal is expected to keep the economy stable in the medium term. Inflation is expected to rise 2.3 percent this year.
“External vulnerabilities remain, amid a persistently large current account deficit and pressures on foreign exchange reserves. The overall fiscal deficits and public debt are projected to stay elevated, calling for urgent policy adjustment," it stated.
According to the statement, Maldives is at a critical juncture to maintain macroeconomic stability and debt sustainability.
"Swift implementation of expenditure reform measures as outlined in the 2025 Budget would be key to reduce imbalances in an orderly manner and restore economic stability," it read.
The IMF mission met with Finance Minister Moosa Zameer, Maldives Monetary Authority (MMA) Governor Ahmed Munawar, MPs and private businesses during the visit to the Maldives.
