Welcome to this site
The objective of this site is to have an academic and professional discussion about issues related to Maldivian Economy.
Maldivian economy has performed exceptionally well over the past decades, but since the Tsunami in December 2004, the economy has faced significant economical challenges. The main problem faced to the economy had been the unsustainable fiscal or budget problem. Since the Tsunami 2004, the budget deficit had ballooned from a mere 1.6 percent of GDP in 2004 to 16.9 percent of GDP in 2008 and it has further increased to 30.9 percent in 2009. With the assistance of IMF and other international organizations, the government managed to reduce the deficit to 16.4 percent in 2010. However, given the high magnitude of the deficit and with medium term projections showing it to remain almost the same rate; government debts reaching to unmanageable level is at risk.
With new found democracy and party system in place, economic reform has been rather given less preference and the new government has also faced many challenges to move with the necessary economic adjustment required because of the political tensions. However, if this new democracy is to sustained, restoring economic equilibrium is essential.
