World Bank: Tourism to pick up, economic growth of 4.3 percent expected

World Bank estimates the tourism industry of Maldives will pick up, fueling economic growth of an average 3.4 percent over the next three years.

Economic Prospectus Report released by world Bank shows Maldivian economy grew by 3.5 percent in 2016 due to growth of construction industry and increase in government expenditure on public infrastructure development.

WB noted that Maldivian government took huge loans to fund the public infrastructure development projects, leading to an increase in debt.

The organization estimates tourism industry of Maldives which experienced a drop in 2016 will pick up in 2017. And economic growth will increase and remain an average 4.3 percent over the three years – 2017, 2018 and 2019.

It also highlighted the challenges to economic development of Maldives – listing increase in debt, national security issues and political instability as major threats.

WB also noted challenges faced by economies of countries in South Asia could have an impact on one another if it goes unresolved, resulting in an increase in risk premium and making it costlier to get funding for projects.

WB estimates Gross Domestic Product of Maldivian economy to increase by 3.9 percent, this year. And stand at an average 4.6 percent through 2018 and 2019.