Maldives Economic Update, September 2011 [electronic resource]

Author/Creator:

World Bank.

Publication:

Washington, D.C. : The World Bank, 2011.

Series:

Economic Updates and Modeling
World Bank e-Library.
Economic Updates and Modeling

Format/Description:

Government document
Book

Local subjects:

Access to Finance
Accounting
Bank Accounts
Banking Sector
Capital Flows
Commodity Prices
Currencies and Exchange Rates
Debt
Debt Markets
Depreciation
Development Policy
Economic theory & Research
Emerging Markets
Finance and Financial Sector Development
Financial Management
Financial Services
Fiscal Policy
Foreign Direct Investment
Income Tax
Inflation
Macroeconomics and Economic Growth
Private Sector Development
Privatization
Public Debt
Savings
Scholarships
Slowdown
Transparency
Uncertainty
Wages

Summary:

Tourism sector growth continues to be robust in 2011, consolidating the strong rebound in real Gross Domestic Product, or GDP growth in 2010. Real GDP growth is estimated to be 8.3 percent in 2011, down from 9.9 percent in 2010. Fast growing tourism receipts are supporting higher than expected government revenue outcomes. Recently introduced tax reforms, particularly the tourism goods and services tax, will put medium term fiscal sustainability on a firmer footing. Nevertheless, fiscal consolidation remains the policy priority for the authorities. Discussions with the International Monetary Fund or IMF on a program of support will resume this quarter. to see if agreement can be reached on measures that ensures medium-term fiscal and debt sustainability Domestic financing of the unsustainable fiscal deficit and rising international commodities prices continue to put pressure on the demand for foreign currency. Consequently, foreign reserves have resumed their downward trend after the boost from one-off privatization receipts. Uncertainty related to the recent devaluation of the Rufiyaa has subsided, but it is still trading at the upper end of the band and there remains an approximately 10 percent parallel market premium. The inflationary effects of the devaluation are now being felt with consumer price inflation rising to double digits in recent months.

Contributor:

World Bank.

Publisher Number:

10.1596/27074

Access Restriction:

Restricted for use by site license.

Online:

Connect to full text
http://hdl.library.upenn.edu/1017.12/2181629