The Minister of Finance and Public Enterprises Hassan Zareer has said the government is taking measures to overcome the pressure on the Maldives’ economy due to the ongoing wars around the world and rising oil prices.
He made the statement in a special interview with Reuters.
The conflicts are affecting tourist arrivals in the Maldives, while higher oil import costs are straining the economy. This is the case in several other countries worldwide.
In his interview with Reuters, Minister Zareer said the global economic slowdown will also affect the Maldives. To counter this, he said the government is committed to expenditure reforms, and that the government was already working on fiscal consolidation and on reducing deficits. However, the country still needs international assistance to further strengthen the economy, he noted. The government is in talks with the World Bank and other international financial institutions for support, he added.
According to the minister, the government expects economic growth of 3.8 percent next year and 6.8 percent in 2028. The government is focused on diversifying the economy, expanding its renewable energy investments to 33 percent by 2028, and supporting a recovery in tourism to fuel the turnaround.
The World Bank plans to provide USD 250 million over two to three years, while the government signed a USD 1.5 billion, five-year framework agreement with the International Islamic Trade Finance Corporation last month.