The Maldives Gross Domestic Product (GDP) is expected to rise from the ‘suspended animation’ it has experienced in 2019.
According to Maldives Monetary Authority (MMA) the island nation’s GDP is expected to pick up by 7.5% in the upcoming year of 2020.
Both the major economic sectors in the country; tourism and construction, that had experienced fair share of slow-downs and idle activities are expected to pick up pace in business and operations.
The monthly economic outlook from MMA confirms the national productivity ratio will be idle at 5.7% by the end of 2019 – which is a drop by 6.8% from initial projections for the year.
Moreover the Maldives central bank further explains the visible drop in the domestic productivity rate can mainly be attributed to the notable slow-down in the construction sector.
The construction sector of Maldivian economy, regarded in recent years as the fastest growing segment, slowed down significantly over many major infrastructural development projects winding down by the early point of 2019 – most such mega projects concluded during late 2018.
The economic sector did not observe projects of similar magnitude in 2019 giving more cause to the industry to remain stale for the most parts of the year.
In addition to this, several key infrastructural projects initially set to commence in 2019 did not follow through the plans over various unprecedented circumstances.
The two major economic sectors; tourism and construction are expected to pick up their activities in 2020.
The tourism industry witnessed several resorts opening this year, however due to these properties already complete in their construction coupled with the considerable time before business activities picked up; the national productivity ratio was affected.
However, with as many as 13 new resort projects set for inception and more mega construction projects in different sectors for 2020 means noticeable pick-up in business activity.