Maldives Economy - 2005

Economy - overview:
Tourism, Maldives' largest industry, accounts for 20% of GDP and more than 60% of the Maldives' foreign exchange receipts. Over 90% of government tax revenue comes from import duties and tourism-related taxes. Fishing is a second leading sector. The Maldivian Government began an economic reform program in 1989 initially by lifting import quotas and opening some exports to the private sector. Subsequently, it has liberalized 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 labor. Most staple foods must be imported. Industry, which consists mainly of garment production, boat building, and handicrafts, accounts for about 18% of GDP. Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is one meter or less above sea level. In late December 2004, a major tsunami claimed 82 lives in the Maldives and caused extensive destruction of property.

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

GDP - real growth rate:
2.3% (2002 est.)

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

GDP - composition by sector:
agriculture: 20%
industry: 18%
services: 62% (2000 est.)

Labor force:
88,000 (2000)

Labor force - by occupation:
agriculture 22%, industry 18%, services 60% (1995)

Unemployment rate:
NEGL% (2003 est.)

Population below poverty line:
NA

Household income or consumption by percentage share:
lowest 10%: NA
highest 10%: NA

Inflation rate (consumer prices):
1% (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

Industrial production growth rate:
4.4% (1996 est.)

Electricity - production:
124.4 million kWh (2002)

Electricity - consumption:
115.7 million kWh (2002)

Electricity - exports:
0 kWh (2002)

Electricity - imports:
0 kWh (2002)

Oil - production:
0 bbl/day (2001 est.)

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

Oil - exports:
NA

Oil - imports:
NA

Exports:
$90 million f.o.b. (2002 est.)

Exports - commodities:
fish, clothing

Exports - partners:
US 40.4%, Thailand 14.6%, Sri Lanka 9.5%, Japan 8.6%, UK 8.2% (2004)

Imports:
$392 million f.o.b. (2002 est.)

Imports - commodities:
petroleum products, ships, foodstuffs, textiles, clothing, intermediate and capital goods

Imports - partners:
Singapore 32.9%, Sri Lanka 11%, India 8.2%, UAE 7.2%, Malaysia 6.4%, Thailand 5.2% (2004)

Debt - external:
$281 million (2003 est.)

Economic aid - recipient:
NA (1995)

Currency (code):
rufiyaa (MVR)

Exchange rates:
rufiyaa per US dollar - 12.8 (2004), 12.8 (2003), 12.8 (2002), 12.24 (2001), 11.77 (2000)