Ministry of Finance has stated that the Maldivian economy is projected to see a growth of 5.5 percent in 2024.
The Finance Ministry stated this in the 2024 state budget submitted to the People's Majlis. As such, the Ministry notes that this is the first time that the Maldivian economic growth is slower than the long run average trend, since 2020.
Finance Ministry noted that the tourism, transport and communications sectors are expected to contribute the most to the country's economy in the coming year as well. However, the number of tourist arrivals from European countries is projected to be lower than in previous years, as tourist arrivals from European countries are not projected to increase during 2024 to the same level as in the past two years.
Although arrivals from European markets are estimated to decline compared to other years, arrivals and bed-nights from other markets such as China, is expected to increase in 2024, compared to 2023.
It is noted in the submitted state budget that the use number of tourists visiting Maldives will exceed 2 million for the first time, in 2024. As such, it is projected that the number of tourists visiting the Maldives is expected to increase by 7.9 percent and the number of bed-nights by 7 percent in 2024.
Noting that the country's economy is projected to see an 8.7 percent growth in 2023, they noted that this is above the long-term average, projected previously. With the opening of the new airport terminal and the expected growth in the tourism industry, the economy is projected to grow at an average of 6.7 percent in the medium term.
It is also stated that with the proposed changes to the subsidy policy in 2024, the inflation rate is expected to reach 3.9 percent next year. However, if these policies are implemented, the inflation rate is expected to remain at 1 percent. It was noted that 2024 is expected to be the year with the highest prices since 2013.
Additionally, by the end of 2024, the official reserve of the state is expected to stand at USD 605.7 million.
