Maldives Economy Profile 2006

Economy - overview

Tourism, Maldives' largest industry, accounts for 20% 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 a second leading sector. 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. 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 18% of GDP. Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is one meter or less above sea level. In late December 2004, a major tsunami left more than 100 dead, 12,000 displaced, and property damage exceeding $300 million. Over the past decade, real GDP growth averaged over 7.5% per year. As a result of the tsunami, the GDP contracted by about 5.5% in 2005.

GDP (purchasing power parity)

$1.25 billion (2002 est.)

GDP (official exchange rate)

$817 million

GDP - real growth rate

-3.6% (2005 est.)

GDP - per capita (PPP)

$3,900 (2002 est.)

GDP - composition by sector

agriculture: 20%
industry: 18%
services: 62% (2000 est.)

Population below poverty line

21% NA%

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices)

6% (2005 est.)

Labor force

88,000 (2000)

Labor force - by occupation

agriculture: 22%
industry: 18%
services: 60% (1995)

Unemployment rate

NEGL% (2003 est.)

Budget

revenues: $265 million (excluding foreign grants)
expenditures: $362 million; including capital expenditures of $80 million (2004 est.)

Industries

fish processing, tourism, shipping, boat building, coconut processing, garments, woven mats, rope, handicrafts, coral and sand mining

Industrial production growth rate

-0.9% (2004 est.)

Electricity - production

135 million kWh (2003)

Electricity - consumption

125.6 million kWh (2003)

Electricity - exports

0 kWh (2003)

Electricity - imports

0 kWh (2003)

Oil - production

0 bbl/day (2003 est.)

Oil - consumption

4,000 bbl/day (2003 est.)

Oil - imports

NA bbl/day

Oil - exports

NA bbl/day

Natural gas - production

0 cu m (2003 est.)

Natural gas - consumption

0 cu m (2003 est.)

Agriculture - products

coconuts, corn, sweet potatoes; fish

Exports

$123 million f.o.b. (2004 est.)

Exports - commodities

fish, clothing

Exports - partners

Japan 22.8%, Thailand 22.7%, Sri Lanka 16.4%, UK 12.6%, Singapore 5.8%, Germany 4.8%, France 4.3% (2005)

Imports

$567 million f.o.b. (2004 est.)

Imports - commodities

petroleum products, ships, foodstuffs, textiles, clothing, intermediate and capital goods

Imports - partners

Singapore 24.1%, UAE 15.7%, India 11.3%, Malaysia 7.2%, Sri Lanka 5.7%, UK 4.5% (2005)

Debt - external

$304 million (2004 est.)

Economic aid - recipient

$27.9 million $NA (2004)

Currency (code)

rufiyaa (MVR)

Exchange rates

rufiyaa per US dollar - 12.8 (2005), 12.8 (2004), 12.8 (2003), 12.8 (2002), 12.24 (2001)

Fiscal year

calendar year