Maldives real GDP bounces back strongly in Q2-2021

Maldives wholesale and retail trade sector relies heavily on imports

Maldives Monetary Authority (MMA) corroborating the quarterly national accounts from Maldives Bureau of Statistics confirmed that the country’s real GDP made a strong rebound in Q2-2021.

According to the central bank’s latest Economic Update, the Maldives real GDP increased by 75.3% in the review quarter after a decline of 10.1% in the first quarter of 2021.

While the real GDP made a bounce back in Q2-2021 it is still 15.9% below pre-pandemic levels in Q2-2019.

The rebound in the annual GDP growth during the review quarter is driven majorly by the significant bump in tourism sector activities. Other economic sectors such as transport and communication and wholesale and retail trade observed notable growth during the review quarter as well.

However, real GDP observed marked decline when compared with Q1-2021 due to the culmination of tourism peak season and the re-imposition of stringent containment measures owing to the Covid-19 resurgence in April 2021.

Forecasts claim that the real GDP is projected to growth in the range of 28.1% and 38.5% by the end of 2021 while the most likely growth rate will be 31.6% for the year.

In addition to this, the real Gross Domestic Product is expected to grow by 12.0% in the upcoming year.