The Maldives economy continued to demonstrate resilience and broad-based momentum during November 2025, supported by strong tourism activity, expanding credit conditions, improving external buffers, and steady price stability, according to the Maldives Monetary Authority’s Economic Update for November 2025, Volume 7, Issue 11. The data indicates that real economic activity accelerated during the year, with real GDP growth reaching 6.7 percent in the second quarter of 2025, up from 3.2 percent in the previous quarter, driven primarily by tourism and fisheries alongside positive contributions from health services, manufacturing, real estate, financial services, and transportation. For the full year 2025, real GDP growth is projected at 5.4 percent, reflecting a sustained recovery trajectory despite downward revisions compared to earlier forecasts, following growth of 3.5 percent in 2024 after 4.9 percent in 2023
Tourism remained the central pillar of economic performance, with October 2025 recording 190,445 tourist arrivals, representing a 10 percent increase year-on-year. Total bednights rose by 5 percent, supported largely by a notable 19 percent expansion in guesthouse bednights, while resort bednights increased by 2 percent. Operational bed capacity expanded by 3,490 beds over the year, while occupancy rates remained stable at around 58 percent. Cumulatively, tourist arrivals during the first ten months of 2025 increased by 10 percent compared to the same period in 2024, although the average length of stay declined to 6.9 days from 7.5 days. Robust demand from key source markets, particularly Russia and China, continued to underpin performance, reinforcing tourism’s role as the primary driver of foreign exchange earnings, employment, and private sector investment.
Inflationary pressures remained contained, with annual headline inflation holding steady at 3.9 percent in October 2025, unchanged from the previous month. Price movements reflected higher contributions from tobacco, food items such as fruits and fish, and restaurant services, while declines in electricity tariffs, vegetables, and mobile communication services helped offset upward pressures. On a monthly basis, consumer prices declined marginally by 0.2 percent, indicating easing short-term cost pressures and supporting household purchasing power amid ongoing economic expansion.
Fiscal developments showed a mixed but improving profile. Government revenue excluding grants increased by MVR 295 million, or 10 percent, in September 2025 compared to the same month in 2024, supported by growth in both tax and non-tax revenue streams. At the same time, total expenditure declined by 18 percent, largely due to reduced capital spending, alongside moderation in recurrent expenditure. Government debt rose to MVR 130.2 billion by the end of the third quarter of 2025, equivalent to 112 percent of GDP, reflecting continued reliance on domestic financing, underscoring the importance of prudent fiscal management alongside growth-enhancing reforms.
Monetary and financial conditions remained accommodative, with reserve money expanding by 11 percent by the end of October 2025 and broad money growth accelerating to 20 percent. The expansion was supported by increases in net foreign assets, higher government borrowing from commercial banks, and rising private sector credit. Credit to the private sector grew by 8 percent year-on-year, with personal loans recording the strongest increase at 19 percent, while tourism continued to account for the largest share of bank credit at 35 percent. Lending to tourism was driven by working capital requirements, new resort developments, and guesthouse expansion, reinforcing confidence in the sector’s medium-term prospects.
External sector indicators showed marked improvement, with total exports increasing by 24 percent in September 2025 compared to a year earlier, supported by higher earnings from frozen and fresh tuna exports as well as re-exports, including jet fuel. Imports declined by 10 percent over the same period, reflecting lower expenditure on transport equipment, petroleum products, and machinery, resulting in an improved trade balance. For the year to September, exports rose by 14 percent while imports fell by 2 percent. Gross international reserves strengthened further, reaching USD 866.3 million at the end of October 2025, up 41 percent from a year earlier, enhancing external resilience and reinforcing confidence in the country’s ability to meet foreign currency obligations.
Overall, the November 2025 economic update highlights a Maldivian economy supported by strong tourism fundamentals, improving external buffers, stable inflation, and expanding financial intermediation. While fiscal and debt dynamics warrant continued vigilance, the data points to a resilient growth outlook, positioning the Maldives favorably amid evolving global economic conditions and reinforcing its appeal to international investors, development partners, and global travelers alike.
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