According to World Bank’s latest Maldives Development Update, the island nation’s poverty rate dropped by 7% in 2021.
The country’s account deficit and overall fiscal position were improved due to recovery of tourism post-Covid. As such service exports and tourism-linked revenue streams picked up in collection during the previous year.
All economical sectors with the exception of construction industry, showed significant bounce back in 2021.
Poverty rates in the country rose by 11% in 2020 due to the Covid-19 pandemic’s global outbreak, which was estimated to have dropped by 4% in 2021.
Moreover, World’s Bank update further noted that the positive trends will continue into the current year, owing to the increase in the capacity in the country’s tourism sector which is reflective of the completion of the Velana International Airport’s (VIA) expansion project as well as new tourist resort openings coupled with the re-emergence of the Chinese traveler market.
Tourism industry as well as the overall economy of the Maldives are expected to make full recovery and hit pre-Pandemic levels by 2023.