Economy

Over 90 per cent of government tax revenue comes from import duties and tourism-related taxes.

Overview

HT Image

Tourism, Maldives' largest industry, accounts for 20 per cent of GDP and more than 60 per cent of the Maldives' foreign exchange receipts.Fishing is a second leading sector.

Over 90 per cent of government tax revenue comes from import duties and tourism-related taxes.

The Maldivian Government began an economic reform programme in 1989 initially by lifting import quotas and opening some exports to the private sector.

Subsequently, it has liberalised regulations to allow more foreign investment. Agriculture and manufacturing continue to play a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labour.

Industry, which consists mainly of garment production, boat building, and handicrafts, accounts for about 18 per cent of GDP.

Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80 per cent of the area is one meter or less above sea level.

Facts

GDP: Purchasing power parity - $1.25 billion (2002 est.)

GDP - Real growth rate:2.3 per cent (2002 est.)

GDP - Per capita:purchasing power parity - $3,900 (2002 est.)

Budget: Revenues: $224 million (excluding foreign grants),expenditures: $282 million, including capital expenditures of $80 million (2002 est.)

Agriculture - Products:coconuts, corn, sweet potatoes; fish

Industries: Fish processing, tourism, shipping, boat building, coconut processing, garments, woven mats, rope, handicrafts, coral and sand mining

Electricity - Production:117 million kwh (2001)

Electricity - Consumption:108.8 million kwh (2001)

Oil - consumption:3,200 bbl/day (2001 est.)