## Maldives: 2005 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: 2005 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-2005-article-iv-consultation-public-information-notice-staff-report-and-statement-48638)

## Other formats

- [Markdown version](/en/publications/cr/issues/2019/09/03/maldives-2005-article-iv-consultation-public-information-notice-staff-report-and-statement-48638/index.md)
- [Structured JSON version](/en/publications/cr/issues/2019/09/03/maldives-2005-article-iv-consultation-public-information-notice-staff-report-and-statement-48638/index.json)
- [Bundle manifest](/en/publications/cr/issues/2019/09/03/maldives-2005-article-iv-consultation-public-information-notice-staff-report-and-statement-48638/bundle-manifest.json)

## Bibliographic details
- Published: September 3, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513512457.002

---

### Damage from the December 2004 tsunami and reconstruction progress
- The Maldives suffered devastating damage from the December 2004 tsunami.
- Human casualties were limited.
- Damage to infrastructure has been extensive, with the cost of reconstruction estimated at nearly a half of gross domestic product.
- Reconstruction work progressed slowly in 2005 but the pace is picking up.
- Recovery work was slow due to insufficient coordination, problems in local consultation, and limited management capacity.
- The government and donors have been addressing these problems and the pace of implementation is accelerating.

### Fiscal outlook and the 2006 budget
- The 2006 budget is described as highly expansionary and threatens sustainability.
- Government actions adding to the fiscal deficit:
  - new recruits;
  - expansion of untargeted social programs;
  - a large domestically funded public investment program.
- The government used optimistic revenue projections in formulating the 2006 budget.
- Fiscal reforms are of high priority.

### Monetary policy and exchange rate management
- Monetary policy should be geared to sustaining the peg arrangement based on indirect management.
- The objective of monetary policy is to support the peg arrangement, which has served well as a credible nominal anchor.

### Implementation challenges and institutional capacity
- Slow recovery attributed to:
  - insufficient coordination among actors;
  - problems in local consultation processes;
  - limited management capacity for reconstruction and recovery.
- Government and donor actions are improving implementation and accelerating recovery work.

### Key statistics and bibliographic facts from the content unit
- Pages: 54
- Volume: 2019
- Issue: 281
- Series: Country Report No. 2019/281
- DOI: https://doi.org/10.5089/9781513512457.002
- Stock No: 1MDVEA2019006
- ISBN: 9781513512457
- ISSN: 1934-7685

*Maldives: 2005 Article IV Consultation-Public Information Notice; Staff Report; and Statement by the Executive Director for Maldives*

---

## Content in this bundle

- **1mdvea2019006**
  - [1mdvea2019006 (Markdown version)](/-/media/files/publications/cr/2019/1mdvea2019006.pdf.md){rel="alternate" type="text/markdown"}
  - [1mdvea2019006 (PDF)](/-/media/files/publications/cr/2019/1mdvea2019006.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2019/09/03/maldives-2005-article-iv-consultation-public-information-notice-staff-report-and-statement-48638_