Maldives: 2002 Article IV Consultation-Public Information Notice; Staff Report; and Statement by the Executive Director for Maldives

IMF Staff Country Reports, September 3, 2019

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Canonical URL: Maldives: 2002 Article IV Consultation-Public Information Notice; Staff Report; and Statement by the Executive Director for Maldives

The performance of the Maldivian economy was strong through most of the past decade, despite handicaps arising from its small size and vulnerability to external developments.
The 2002 Article IV discussions provided an opportunity to reassess progress toward restoring the soundness of macroeconomic and structural policies.
The authorities have made some progress in responding to key policy challenges.

The devaluation and the weaker dollar have brought the effective real exchange rate closer to that of main competitors.
Reserves have clawed back some of the losses in the aftermath of the devaluation.
Policy implication: policies need to support the fixed exchange rate.

Ongoing structural changes cited:
- Progressive liberalization of the financial sector.
- Further private sector participation in activities still dominated by state-owned enterprises.
- The likely tapering off of external assistance.
Recent consultations have stressed the need for:
- A stronger fiscal position.
- Independent monetary management.
Policy direction: adapt policies to structural changes while supporting the fixed exchange rate to ensure favorable medium-term performance.

Subject: Expenditure, Exports, External debt, International trade, Public debt, Revenue administration
Keywords: Asia and Pacific, authority, automatic resort, capital revenue, central bank financing, CR, deficit, Exports, financing, Global, government activity, ISCR, Maldivian authorities, percentage points of GDP, staffs appraisal