The International Monetary Fund has projected that economic growth in the Maldives will slow to about 1 percent in 2026, despite ongoing government efforts to stabilise the economy.
In its Article IV consultation report, the IMF pointed to the impact of tensions in the Middle East, a slowdown in the tourism sector, and higher import bills and subsidy costs driven by rising global energy prices. While the economy remains resilient, public spending and debt levels stay elevated.
Over the medium term the Fund expects growth to average around 4 percent. It urged further measures to maintain stability even as near-term momentum is expected to rebound.
The projections align with statements from Finance Minister Hassan Zareer, who has highlighted the pressure from tripled energy subsidies and softer tourist arrivals.