## Maldives: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Maldives

_IMF Staff Country Reports, November 11, 2023_

## Source details

**Canonical URL:** [Maldives: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Maldives](https://www.imf.org/en/publications/cr/issues/2023/11/09/maldives-2022-article-iv-consultation-press-release-staff-report-and-statement-by-the-541373)

## Other formats

- [Markdown version](/en/publications/cr/issues/2023/11/09/maldives-2022-article-iv-consultation-press-release-staff-report-and-statement-by-the-541373/index.md)
- [Structured JSON version](/en/publications/cr/issues/2023/11/09/maldives-2022-article-iv-consultation-press-release-staff-report-and-statement-by-the-541373/index.json)
- [Bundle manifest](/en/publications/cr/issues/2023/11/09/maldives-2022-article-iv-consultation-press-release-staff-report-and-statement-by-the-541373/bundle-manifest.json)

## Bibliographic details
- Published: November 11, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400258633.002

---

### Economic rebound and outlook
- Economic activity "rebounded strongly from the pandemic-induced contraction," supported by the authorities’ "decisive policy measures."
- Risks to the outlook are "tilted to the downside," including:
  - "a possible sharp slowdown in key source markets for tourism,"
  - "high commodity prices,"
  - "tighter global financial conditions."
- Upside risk to growth: "A resumption of tourist arrivals from China."

### Fiscal and external vulnerabilities
- Fiscal and external vulnerabilities remain elevated due to:
  - "rising subsidies,"
  - "high capital spending,"
  - "an increased interest burden."
- The report calls for implementing "a comprehensive set of reforms to reduce fiscal, debt, and external vulnerabilities, and strengthen economic resilience."

### Debt distress assessment
- The Maldives has "a high risk of external debt distress and a high overall risk of debt distress."

### Inflation and subsidies
- "Inflation has risen but is relatively contained due to price subsidies."

### Financial sector and stability
- The report recommends that "financial sector policies should remain vigilant to safeguard financial stability" because of:
  - "the large exposure of the banking sector to the sovereign,"
  - "the expiration of pandemic-related lending support schemes."

### Policy recommendations and opportunity
- The ongoing economic recovery provides an opportunity to "swiftly implement a comprehensive set of reforms" targeting:
  - fiscal consolidation and public financial management,
  - government debt management and external debt reduction,
  - measures to strengthen resilience against external shocks.

*Source: Maldives: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Maldives*

---

## Content in this bundle

- **1mdvea2023002**
  - [1mdvea2023002 (Markdown version)](/-/media/files/publications/cr/2023/english/1mdvea2023002.pdf.md){rel="alternate" type="text/markdown"}
  - [1mdvea2023002 (PDF)](/-/media/files/publications/cr/2023/english/1mdvea2023002.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2023/11/09/maldives-2022-article-iv-consultation-press-release-staff-report-and-statement-by-the-541373_