Maldives: 2008 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for the Maldives
IMF Staff Country Reports, March 17, 2009
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- Maldives: 2008 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for the Maldives
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- Published: March 17, 2009
- Series: IMF Staff Country Reports
Summary and Main Findings
- The main challenge identified for Maldives is to contain fiscal expenditures that have increased sharply following the tsunami.
- Expenditure has reached extraordinarily high levels by international and historical standards.
- The majority of the increase in domestically financed expenditure is unrelated to the tsunami.
- Executive Directors were encouraged that Maldives’ economy has rebounded strongly from the December 2004 tsunami.
- Directors commended the authorities for implementing the Maldives Monetary Authority Act by appointing an independent governor.
Fiscal and Public Finance Issues
- Primary concern: sharply increased fiscal expenditures post-tsunami.
- Noted that most of the increase in domestically financed expenditure is not tsunami-related.
- Policy implication: need to contain current spending and address expenditure composition to restore fiscal sustainability.
Economic Performance and Sectors
- Economy: strong rebound from the December 2004 tsunami.
- Key sector highlighted: Tourism.
- Related macro concerns: External debt and Public debt.
Institutional and Governance Developments
- Implementation of the Maldives Monetary Authority Act through the appointment of an independent governor was positively noted by Directors.
Subject and Keywords
- Subject: Current spending, Economic sectors, Expenditure, External debt, Public debt, Tourism
- Keywords: CR, Current spending, expenditure reduction, financing, financing gap, GDP, Global, government, ISCR, Maldives well, Maldivian authorities, revenue side, Tourism
International Monetary Fund. Maldives: 2008 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for the Maldives (IMF Staff Country Reports 2009, 097).