MALÉ: The International Monetary Fund said Maldives economic growth is projected to slow to 1 percent in 2026, down from 3.2 percent in 2025, as tourism arrivals are affected by tensions in the Middle East.
The IMF's Regional Economic Outlook for Asia and Pacific highlighted that the Maldives, heavily dependent on luxury tourism and Russian visitors, faces headwinds as geopolitical tensions in West Asia continue to affect travel demand and airline connectivity.
Tourism accounts for approximately 28 percent of Maldives GDP and over 60 percent of foreign exchange earnings. The country had previously benefited from strong Russian visitor numbers following increased air connectivity.
The report noted that Maldives authorities have been working to diversify tourism markets, including promoting Chinese and Indian visitor arrivals, while also investing in infrastructure to support longer-term growth prospects.
Inflation is expected to ease to 3 percent in 2026 from higher levels in 2025, supported by stable food prices and improved supply chain efficiency.
Sources: IMF, Maldives Ministry of Finance.
