Maldives Economy Profile 2009

Economy - overview

Tourism, Maldives' largest industry, accounts for 28% of GDP and more than 60% of 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 4.6% in 2005. A rebound in tourism, post-tsunami reconstruction, and development of new resorts helped the economy recover quickly, with GDP growth registering 18% in 2006. Growth slowed in 2007-08, but remained above 5% per year. The trade deficit expanded sharply as a result of high oil prices and imports of construction material. Government spending on social needs, subsidies, and civil servant salaries have created a large budget deficit and inflation has picked up sharply, reaching nearly 13% in October 2008 due to high oil and food prices. Diversifying beyond tourism and fishing, reforming public finance, 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 (purchasing power parity)

$1.716 billion (2008 est.)
$1.624 billion (2007 est.)
$1.515 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$1.259 billion (2008 est.)

GDP - real growth rate

5.7% (2008 est.)
7.2% (2007 est.)
18% (2006 est.)

GDP - per capita (PPP)

$4,400 (2008 est.)
$4,500 (2007 est.)
$4,400 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 7%
industry: 17%
services: 76% (2006 est.)

Population below poverty line

21% (2004)

Labor force

136,100 (2007)

Labor force - by occupation

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

Unemployment rate

14.4% (2006 est.)

Household income or consumption by percentage share

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

Budget

revenues: $762 million (including foreign grants)
expenditures: $884 million (2008 est.)

Inflation rate (consumer prices)

12.8% (October 2008 est.)
5% (2007 est.)

Central bank discount rate

13% (31 December 2008)
12.5% (31 December 2007)

Commercial bank prime lending rate

13% (31 December 2008)
13% (31 December 2007)

Stock of money

$475.2 million (31 December 2008)
$344.1 million (31 December 2007)

Stock of quasi money

$487.8 million (31 December 2008)
$434.9 million (31 December 2007)

Stock of domestic credit

$1.548 billion (31 December 2008)
$1.08 billion (31 December 2007)

Industries

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

Industrial production growth rate

-0.9% (2004 est.)

Electricity - production

270 million kWh (2007 est.)

Electricity - production by source

fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

203.7 million kWh (2006 est.)

Electricity - exports

0 kWh (2008 est.)

Electricity - imports

0 kWh (2008 est.)

Oil - production

0 bbl/day (2008 est.)

Oil - consumption

5,490 bbl/day (2006 est.)

Oil - imports

5,362 bbl/day (2005)

Oil - exports

1,499 bbl/day (2005)

Oil - proved reserves

0 bbl (1 January 2008 est.)

Natural gas - production

0 cu m (2008 est.)

Natural gas - consumption

0 cu m (2008 est.)

Natural gas - exports

0 cu m (2008 est.)

Natural gas - imports

0 cu m (2008 est.)

Natural gas - proved reserves

0 cu m (1 January 2008 est.)

Current Account Balance

-$638 million (2008 est.)
-$472 million (2007 est.)

Agriculture - products

coconuts, corn, sweet potatoes; fish

Exports

$113 million (2008 est.)
$167 million (2006 est.)

Exports - commodities

fish

Exports - partners

Thailand 32.2%, UK 12.9%, France 11.4%, Italy 8.5%, Algeria 8.4%, Sri Lanka 8% (2008)

Imports

$1.276 billion (2008 est.)
$930 million (2006 est.)

Imports - commodities

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

Imports - partners

Singapore 26.4%, UAE 16.4%, India 10.3%, Malaysia 10%, Thailand 4.7%, Sri Lanka 4.5% (2008)

Debt - external

$477 million (2008 est.)
$482 million (2006 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

$66.83 million (2005)

Currency (code)

MVR

Currency (code)

rufiyaa (MVR)

Exchange rates

rufiyaa (MVR) per US dollar - 12.8 (2008), 12.8 (2007), 12.8 (2006), 12.8 (2005), 12.8 (2004)

Fiscal year

calendar year