The World Bank has stated that the Maldives is expected to remain the fastest-growing economy in the South Asia region.
In the Global Economic Prospects report for January 2023, the World Bank stated that growth in the Maldives is expected to moderate to 8.2% in 2023, which is below previous projections, as the post-pandemic boost fades. Nonetheless, the Maldives is expected to remain the fastest-growing economy in the region, benefiting from an increase in tourist arrivals and infrastructure investments.
In the report, the World Bank highlighted that tourism in the Maldives improved in 2022, returning its gross domestic product (GDP) to its pre-pandemic level more quickly than previously expected. The growth of the tourism industry is expected to be 12.4% in 2023.
Furthermore, the World Bank stated that risks remain to the downside, including those related to the repercussions of the invasion of Ukraine, tightening global financing conditions, effects of the pandemic, and country-specific vulnerabilities of several regional economies. This would undermine the tourism earnings of South Asia’s tourism-dependent economies such as the Maldives.