Maldives Economy Profile 2008

Economy - 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 (purchasing power parity)

$2.839 billion (2006 est.)

GDP (official exchange rate)

$1.024 billion (2007 est.)

GDP - real growth rate

5.5% (2007 est.)

GDP - per capita (PPP)

$3,900 (2002 est.)

GDP - composition by sector

agriculture: 16%
industry: 7%
services: 77% (2006 est.)

Population below poverty line

21% (2004)

Household income or consumption by percentage share

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

Inflation rate (consumer prices)

6% (2005 est.)

Labor force

101,300 (2004)

Labor force - by occupation

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

Unemployment rate

NEGL% (2003 est.)

Budget

revenues: $508 million (including foreign grants)
expenditures: $671 million (2006 est.)

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

169 million kWh (2005)

Electricity - consumption

157.1 million kWh (2005)

Electricity - exports

0 kWh (2005)

Electricity - imports

0 kWh (2005)

Oil - production

0 bbl/day (2005 est.)

Oil - consumption

5,000 bbl/day (2005 est.)

Oil - imports

6,390 bbl/day (2004)

Oil - exports

1,517 bbl/day (2004)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

0 cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Agriculture - products

coconuts, corn, sweet potatoes; fish

Exports

$167 million f.o.b. (2006)

Exports - commodities

fish

Exports - partners

Thailand 33.1%, UK 14.3%, Sri Lanka 11.9%, Japan 10.3%, France 6.9%, Algeria 6.1% (2006)

Imports

$930 million f.o.b. (2006)

Imports - commodities

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

Imports - partners

Singapore 23.2%, UAE 15.8%, India 11.1%, Malaysia 7.9%, Thailand 6.9%, Sri Lanka 5.6% (2006)

Debt - external

$482 million (2006 est.)

Market value of publicly traded shares

$NA

Economic aid - recipient

$66.83 million (2005)

Currency (code)

rufiyaa (MVR)

Exchange rates

rufiyaa per US dollar - NA (2007), 12.8 (2006), 12.8 (2005), 12.8 (2004), 12.8 (2003)

Fiscal year

calendar year