Maldives economy grows by 5.1 percent in 2024

Maldives economy grew by 5.1 percent last year, according to the Maldives Monetary Authority (MMA).

MMA’s latest annual report shows the actual growth was 0.4 percentage below the central bank’s October 2023 forecast and marginally lower than the Finance Ministry’s 5.5 percent projection in the budget.

Gross Domestic Product (GDP) reached USD 7 billion (MVR 109 billion) by the end of 2024, an increase of around USD 500 million compared to the previous year.

The slowdown in overall growth was largely due to declines in the fisheries, manufacturing, and construction sectors. The fisheries sector contracted by a significant 49 percent, attributed primarily to a steep fall in fish processing activities such as canning.

Meanwhile, construction activity shrank by 2.1 percent, with a 7 percent drop in imports of construction materials signaling weaker demand in the sector.

Tourism remained the key driver of economic expansion. The sector grew by 7.3 percent last year, with tourist arrivals surpassing the two million mark. Travel receipts reached USD 4.8 billion, up by USD 500 million from the previous year.

Wholesale and retail trade also grew by 5.9 percent last year.

While the Maldivian economy grew by 4.7 percent in 2023, the growth rate has now fallen short of MMA projections for two consecutive years.

However, MMA forecasts a growth rate of 6.4 percent this year.