Minister of Finance Ibrahim Ameer has revealed the Gross Domestic Product (GDP) of the Maldives is expected to decline by 11.5% this year due to the COVID-19 pandemic.
Speaking at the Parliamentary Committee on Economic Affairs, Minister Ameer said the GDP of the country is projected to decline significantly this year as the tourism industry has been brought to a halt due to COVID-19. As such, he revealed the national GDP is expected to decline by 11.5% this year.
Following a GDP growth of 5.7% in 2019, it was initially projected to grow by 7.5% this year. The government projected a 12.7% growth in the tourism sector, while the construction sector was also expected to grow as several new projects were planned for the year. However, both sectors have incurred major losses due to COVID-19.
The government had initially targeted to bring in 2 million tourists this year, after bringing in a record total of 1.7 million tourists last year. However, tourist arrivals are now expected to be around 980,000 at the end of the year.
As per the Asia Economic Focus published by the World Bank, the GDP of the Maldives is expected to decline between 8.5% and 13% this year. The report stated the Maldives would be undergoing the most severe economic impacts of the COVID-19 pandemic among the South Asian countries, and called for strong mitigation measures to fast-track economic recovery.