Economy of Maldives
Overview
Tourism, Maldives' largest industry, accounts for 28% of GDP and more than 60% of the Maldives' foreign exchange receipts. Over 90% of government tax revenue comes from import duties and tourism-related taxes.
Fishing is the second leading sector. Agriculture and manufacturing continue to play a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor. Most staple foods must be imported. Industry, which consists mainly of garment production, boat building, and handicrafts, accounts for about 7% of GDP.
The Maldivian Government began an economic reform program in 1989 initially by lifting import quotas and opening some exports to the private sector. Subsequently, it has liberalized regulations to allow more foreign investment. Real GDP growth averaged over 7.5% per year for more than a decade. In late December 2004, a major tsunami left more than 100 dead, 12,000 displaced, and property damage exceeding $300 million. As a result of the tsunami, the GDP contracted by about 3.6% in 2005.
A rebound in tourism, post-tsunami reconstruction, and development of new resorts helped the economy recover quickly. The trade deficit has expanded sharply as a result of high oil prices and imports of construction material. Diversifying beyond tourism and fishing and increasing employment are the major challenges facing the government. Over the longer term Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is 1 meter or less above sea level.
GDP
Real Growth Rate
7%
Per Capita
USD 4,600
From Agriculture
16%
From Industry
7%
From Services
77%
Labour Force
Available for Work
Unknown
Working in Agriculture
22%
Working in Industry
18%
Working in Services
60%
Unemployment Rate
0%
Population Below Poverty Line
21%
Inflation Rate
5%
Investment as Percent of GDP
0%
Budget
Revenues
USD 508 (m)
Expenditures
USD 671 (m)
Public Debt
US$ 0.00 (m)
Agricultural Products
Coconuts, corn, sweet potatoes; fish
Core Industries
Tourism, fish processing, shipping, boat building, coconut processing, garments, woven mats, rope, handicrafts, coral and sand mining
Exports
Value
USD 167 (m)
Commodities
Fish
Partners
Thailand 33.1%, UK 14.3%, Sri Lanka 11.9%, Japan 10.3%, France 6.9%, Algeria 6.1% (2006)
Imports
Value
USD 930 (m)
Commodities
Petroleum products, ships, foodstuffs, clothing, intermediate and capital goods
Partners
Singapore 23.2%, UAE 15.8%, India 11.1%, Malaysia 7.9%, Thailand 6.9%, Sri Lanka 5.7% (2006)
External Debt
USD 482 (m)
Fiscal Year
Calendar year
