The Maldives Monetary Authority (MMA) has said that the the country's economy is maintaining its pace despite uncertainty over the global economic situation.
In its second quarter economic update, the central bank said the economy will continue to grow strongly this year with growth in the tourism and fisheries industries, improving government finances and slowing inflation.
Tourism is the most active of the economic sectors. The number of tourists in the second quarter of this year increased by 16 percent compared to the second quarter of last year.
Along with tourism and fisheries, construction sector has also made good progress. MMA said this is due to major infrastructure projects and resort development projects. MMA said food and energy prices fell and inflation fell to 4.6 percent.
The central bank also said the government's financial position and the financial sector are in good shape, with reserves increasing to USD 832 million.
Economic growth has been below past averages despite the MMA saying the pace will be maintained. In the recent past, economic growth has been held at above five percent. However, the MMA and foreign agencies are forecasting real GDP growth of 4.5 percent this year.
Economic growth was below five percent last year, with the slowest growth since the economy stabilized after the 2012 financial crisis, apart from 2020 when the economy slowed down due to the coronavirus pandemic.
