World Bank raises GDP forecast amid tourism surge and VIA Expansion

Jun 11, 2025, 10:20 AM
World Bank raises GDP forecast amid tourism surge and VIA Expansion

The World Bank has revised its growth forecast for the Maldivian economy, projecting a stronger-than-expected performance this year, driven by a robust recovery in the tourism sector and an increase in tourist arrivals.

In its latest Global Economic Prospects report, the World Bank now expects the Maldives' GDP to expand by 5.7 percent in 2025, up from the earlier forecast of 4.6 percent.

According to the report, the upward revision reflects renewed activity in tourism, a key pillar of the nation's economy, fueled in part by infrastructure improvements and seasonal demand.

World Bank highlighted the role of the new terminal at Velana International Airport (VIA) in strengthening tourism capacity and drawing more visitors. In line with the current trend, the World Bank has also upgraded its economic growth outlook for 2026.

However, due to global trade uncertainties and weak international demand, growth for the next fiscal year is projected at a more modest 5.3 percent, a figure still above prior estimates but below government expectations.

In contrast, the Ministry of Finance had projected a 6.4 percent growth rate in its 2025 budget, anticipating the impact of the airport terminal’s completion. These projections were higher than those offered by international institutions such as the World Bank and the International Monetary Fund (IMF).

Government officials confirmed that the new terminal at VIA is slated for inauguration next month, just ahead of Independence Day celebrations. If completed as scheduled, the terminal is expected to significantly increase flight capacity and tourist inflows, especially important as the peak tourism season approaches.

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