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Maldives Faces High Risk Of External And Overall Debt Distress
The Business Guardian
|February 09, 2024
The International Monetary Fund (IMF) has recently sounded a warning bell, indicating that the Maldives remains at a “high risk” of external and overall debt distress, driven by escalating fiscal deficits and mounting public debt.
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This cautionary assessment follows a recent visit by an IMF mission to Male led by Piyaporn Sodsriwiboon from January 23 to February 6, aimed at discussing economic developments and policy priorities.
According to the IMF report, the Maldivian economy exhibited a robust rebound of 13.9 percent in 2022 following the pandemic-induced contraction and is expected to grow by 4.4 percent in 2023. However, concerns linger as the projected current account deficit for 2024 is anticipated to remain substantial, exacerbated by soaring fuel prices and robust import demands.
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