Maldives Economic Update, September 2011

Tourism sector growth continues to be robust in 2011, consolidating the strong rebound in real Gross Domestic Product, or GDP growth in 2010. Real GDP growth is estimated to be 8.3 percent in 2011, down from 9.9 percent in 2010. Fast growing tourism receipts are supporting higher than expected government revenue outcomes. Recently introduced tax reforms, particularly the tourism goods and services tax, will put medium term fiscal sustainability on a firmer footing. Nevertheless, fiscal consolidation remains the policy priority for the authorities. Discussions with the International Monetary Fund or IMF on a program of support will resume this quarter. to see if agreement can be reached on measures that ensures medium-term fiscal and debt sustainability Domestic financing of the unsustainable fiscal deficit and rising international commodities prices continue to put pressure on the demand for foreign currency. Consequently, foreign reserves have resumed their downward trend after the boost from one-off privatization receipts. Uncertainty related to the recent devaluation of the Rufiyaa has subsided, but it is still trading at the upper end of the band and there remains an approximately 10 percent parallel market premium. The inflationary effects of the devaluation are now being felt with consumer price inflation rising to double digits in recent months.

Bibliographic Details

Main Author:	World Bank
Format:	Report biblioteca
Language:	English en_US
Published:	Washington, DC 2011-09
Subjects:	ACCESS TO FINANCIAL SERVICES, ACCOUNTING, ADVERSE SELECTION, ASSETS, AVERAGE OIL PRICES, BALANCE OF PAYMENTS, BANK ACCOUNTS, BANK DEBT, BANKING PROJECT, BANKING SECTOR, BANKS, BASIS POINTS, BENCHMARK, BID, BILLS, CAPITAL FLOWS, COMMODITIES, COMMODITY, COMMODITY PRICES, CONSUMER PRICE INFLATION, CONTROLLED PRICES, CORPORATE PROFIT TAX, CORPORATE PROFITS, CORPORATE TAX, CURRENCY PAYMENT, CURRENT ACCOUNT, CURRENT ACCOUNT BALANCE, CURRENT ACCOUNT DEFICIT, CUSTOMS DUTIES, DEBT, DEBT CRISIS, DEBT SUSTAINABILITY, DEFICIT FINANCING, DEPOSITS, DEPRECIATION, DEVALUATION, DEVELOPMENT POLICY, DISBURSEMENT, DOMESTIC BANKING, DOMESTIC BANKING SECTOR, DUMPING, ECONOMIC DEVELOPMENTS, ECONOMIC REFORMS, EMPLOYERS, ENVIRONMENTAL MANAGEMENT, ENVIRONMENTAL RISKS, EXCHANGE RATE, EXCHANGE RATE REGIME, EXCHANGE-RATE, EXPENDITURE, EXPORTS, EXTERNAL BORROWING, EXTERNAL DEBT, EXTERNAL FINANCING, FINANCIAL MANAGEMENT, FINANCIAL SERVICES, FINANCING REQUIREMENTS, FISCAL CONSOLIDATION, FISCAL DEFICIT, FISCAL DEFICITS, FISCAL POLICY, FISCAL POSITION, FIXED EXCHANGE RATE, FIXED EXCHANGE RATE REGIME, FIXED RATE, FOOD PRICE, FOOD PRICES, FORECASTS, FOREIGN CURRENCY, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN EXCHANGE RESERVES, FOREIGN FINANCING, FOREIGN RESERVES, GLOBAL CLIMATE, GOVERNMENT EXPENDITURES, GOVERNMENT FINANCES, GOVERNMENT PAPER, GOVERNMENT REVENUE, GOVERNMENT SECURITIES, HIGH INFLATION, IMPORT, IMPORT CONTENT, IMPORT DUTIES, IMPORT DUTY, IMPORT GROWTH, IMPORTS, INCOME TAX, INFLATION, INSTRUMENT, INTEREST PAYMENTS, INTERNAL AUDITS, INTERNATIONAL RESERVES, KEY RISKS, LEASE PAYMENTS, LEVY, LOAN, LOAN PROGRAM, M1, M2, MOBILE PHONE, MONETARY AUTHORITY, OIL PRICES, OUTPUT, PARALLEL MARKET, PAYMENT SYSTEM, PENSION, PENSION SYSTEM, PERSONAL INCOME, PHONE BANKING, PORTFOLIO, POVERTY REDUCTION, PRICE INCREASES, PRIVATE CAPITAL, PRIVATE CAPITAL FLOWS, PRIVATE SECTOR DEVELOPMENT, PRIVATIZATION, PUBLIC DEBT, PUBLIC EXPENDITURE, PUBLIC EXTERNAL DEBT, REAL GDP, RECEIPTS, RECURRENT EXPENDITURE, RESERVES, SAVINGS, SCHOLARSHIP, SCHOLARSHIPS, SHORT-TERM FOREIGN LIABILITIES, SLOWDOWN, SOCIAL PROTECTION, SUPPLY CONSTRAINTS, SUSTAINABILITY ANALYSIS, T-BILL, T-BILL RATES, TAX, TAX COLLECTION, TAX COLLECTIONS, TAX RATE, TAX REFORMS, TAX REGIME, TAX REVENUES, TAX SYSTEM, TAXATION, TEMPORARY FINANCING, TOTAL REVENUE, TRADE DEFICIT, TRADING, TRANCHE, TRANSPARENCY, TREASURY, UNCERTAINTIES, UNCERTAINTY, WAGES, WITHHOLDING TAX,
Online Access:	http://documents.worldbank.org/curated/en/640291468282319768/Maldives-economic-update-September-2011 http://hdl.handle.net/10986/27074
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