Central Bank, Maldives Monetary Authority (MMA) has revealed that the economy had grown in the last year, boosted by growth in the tourism sector.
The annual report issued by the Bank showed that country’s economic growth had surged compared to 2016.
Gross Domestic Product (GDP) had increased to 9.6 percent in 2017 compared to 2.6 percent in 2016. MMA attributed the increase in GDP to growth in tourism and construction industries and overall increase in purchases.
Tourism sector recorded the highest growth in the past four years, with an eight percent increase. MMA attributed this to lower airfare rates caused by reduction in global oil prices, as well as increased flights to the Maldives. The agency further noted that sector gains could also be attributed to growth in those countries with the highest arrivals to the Maldives.
Earnings from tourism sector also increased to nine percent.
Imports to construction industry increased by 24 percent boosted by uptake in construction projects, especially public sector projects. An additional aspect driving the sector is the increase in loans issued by banks for housing projects to individuals.
Inflation had also risen, MMA report noted. Changes to subsidies in 2016 and introduction of import duties on energy drinks also contributed to rising inflation rates.
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