World Bank Predicts 5.2% Growth for Maldives Economy in 2025

The World Bank has forecast a 5.2% growth for the Maldivian economy this year, driven mainly by the expansion of Velana International Airport. This projection was shared in the latest Maldives Development Update report released on Wednesday.

The report outlines both opportunities and risks for the country’s economy. One of the main highlights is the upcoming new terminal at Velana Airport, which is expected to play a major role in boosting economic activity. The government aims to open the new terminal before October. It will feature aero boarding bridges, an upgraded baggage handling system, and more room for food outlets, retail stores, and passenger lounges.

Despite the positive outlook, the World Bank warns of key economic challenges. These include rising global prices, high public debt, and major repayments due in the next two years. There’s also concern about a potential drop in tourist arrivals due to uncertainty in international trade.
Tourism remains a vital part of the Maldivian economy. Over 783,000 tourists have visited the country so far this year, with China, Russia, and Western countries leading the list.

However, if global prices rise, import costs may increase, adding more pressure to the economy. The World Bank advises reducing public spending to avoid slowing growth in the coming years.