The government has approached the World Bank and other international donors for assistance to address economic challenges from higher fuel prices and lower tourism revenue.
Finance Minister Hassan Zareer told Reuters that as an oil-importing country, the Maldives has seen energy subsidy expenditure triple this year because of elevated fuel costs linked to regional conflicts. This has pushed the projected budget deficit to 9 percent from an earlier estimate of 7.1 percent.
Economic growth is projected as low as 1 percent in 2026. Plans include leasing additional aircraft for the national airline and increasing flights to Australia and other markets. The comments follow Moody’s upgrade of the Maldives sovereign rating from Caa2 to Caa1.