Maldives: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Maldives
IMF Staff Country Reports, May 13, 2024
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- Maldives: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Maldives
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Bibliographic details
- Published: May 13, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400275920.002
Economic performance and outlook
- Real gross domestic product growth is estimated to moderate to 4.4 percent in 2023.
- Real gross domestic product growth is projected to rise to 5.2 percent in 2024.
- Recovery from the coronavirus disease 2019 pandemic has shown resilience despite headwinds from the war in Ukraine.
Fiscal, external, and public debt vulnerabilities
- Discussions focus on comprehensive policy reforms to:
- address fiscal vulnerabilities,
- stem rising balance of payments pressures,
- safeguard financial stability while supporting sustained strong and inclusive growth.
- Front-loaded fiscal adjustments are urged to reduce vulnerabilities and restore sustainability of public finances.
Monetary and macroprudential policy recommendations
- Tighter monetary and macroprudential policies are recommended alongside fiscal adjustment.
- Adopting macroprudential policies will help mitigate systemic risks stemming from the sovereign-bank nexus.
- Financial sector oversight and crisis management should be further enhanced.
Climate, institutions, and mobilizing finance
- Strengthening institutions to support climate adaptation and mitigation efforts is crucial.
- Mobilizing climate finance is identified as a key priority to support climate-related measures.
Structural and governance reforms for inclusive growth
- Improving the business climate is recommended to support strong and inclusive growth.
- Addressing governance and corruption vulnerabilities is highlighted as necessary.
- Enhancing skill development is recommended to support inclusive growth and labor market needs.
Source: Maldives: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Maldives (IMF), May 13, 2024.
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