Finance Minister Ibrahim Ameer announced on Friday that the country’s nominal gross domestic product (GDP) is expected to exceed MVR 100 billion for the first time in its history. According to Ameer, this milestone serves as evidence that the government’s macroeconomic policies have succeeded in achieving economic growth despite challenges such as the ongoing Russia-Ukraine conflict and the COVID-19 pandemic.
Nominal GDP is a measure of a country’s economic output that does not account for inflation or deflation. It is the total market value of all goods and services produced within a country’s borders over a given period. The Maldives’ nominal GDP has steadily increased over the past few years, rising from MVR 63.8 billion in 2016 to MVR 96.3 billion in 2020.
Despite facing challenges such as the COVID-19 pandemic, which led to a sharp decline in tourism, the Maldives’ economy has bounced back in recent months. The country’s tourism industry, which accounts for the majority of its GDP, has seen a resurgence in visitors since October 2021. According to statistics released by the Ministry of Tourism, tourist arrivals in 2022 increased by 26.7 percent compared to 2021.
Ameer said the number of visitors to the Maldives is expected to continue to increase, with an estimated 1.93 million tourists expected to arrive from October 2023. He attributed this growth to the positive indications of new flight routes opening and the recovery of the Chinese market.