## 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_

## Source details

**Canonical URL:** [Maldives: 2002 Article IV Consultation-Public Information Notice; Staff Report; and Statement by the Executive Director for Maldives](https://www.imf.org/en/publications/cr/issues/2019/09/03/maldives-2002-article-iv-consultation-public-information-notice-staff-report-and-statement-48637)

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## Bibliographic details
- Published: September 3, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513512440.002

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### Economic performance (overview)
- 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.

### Exchange rate, reserves, and external position
- 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.

### Structural changes and policy challenges
- 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 areas and keywords
- 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

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_Source: https://www.imf.org/en/publications/cr/issues/2019/09/03/maldives-2002-article-iv-consultation-public-information-notice-staff-report-and-statement-48637_