According to the latest available data from Maldives Monetary Authority (MMA) the real GDP saw massive decline by 51.6% in second quarter of 2020.
Moreover, Maldives central bank is corresponding data extracted from National Bureau of Statistics for the Quarterly National Accounts for the review quarter.
As per MMA the real GDP decline is in comparison with the same period of 2019.
Furthermore, this marks a steeper plunge from the revised growth rate of -5.0% for the first quarter of 2020.
MMA reports the market decline in growth strongly comes from the impact of Covid-19 pandemic, on an outbreak in Maldives since March.
On the other hand, government’s decision for a full lockdown in Greater Male’ Region acted as catalyst to the decline.
Borders remained closed from March 2020 until a period of roughly three months, ceasing international aviation and thus, tourism-based receipts.
Meanwhile, MMA projects real GDP growth to head into stronger declining territory in 2020.
Tourist arrivals remain sluggish despite efforts made to push for destination promotion.
Furthermore, tourist arrivals may observe further decline with negative spillover effect on all major economic sectors.
Maldives GDP took a heavy punch following the viral pandemic stalling the country’s major economic components; tourism and construction.
Meanwhile, local food and beverages industry report massive losses at almost MVR20 million collectively.