FAX: [1] (212) 661-6405
Diplomatic representation from the US:
the US does not have an embassy in Maldives; the US Ambassador to Sri Lanka, Ambassador Robert O. BLAKE, Jr., is accredited to Maldives and makes periodic visits
Flag description:
red with a large green rectangle in the center bearing a vertical white crescent; the closed side of the crescent is on the hoist side of the flag
Economy ::Maldives
Economy - overview:
Tourism, Maldives' largest industry, accounts for 28% of GDP and more than 60% of foreign exchange receipts. Over 90% of government tax revenue comes from import duties and tourism-related taxes. Fishing is the second leading sector. 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 7% of GDP. 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. Real GDP growth averaged over 7.5% per year for more than a decade. In late December 2004, a major tsunami left more than 100 dead, 12,000 displaced, and property damage exceeding $300 million. As a result of the tsunami, the GDP contracted by about 4.6% in 2005. A rebound in tourism, post-tsunami reconstruction, and development of new resorts helped the economy recover quickly, with GDP growth registering 18% in 2006. Growth slowed in 2007-08, but remained above 5% per year. The trade deficit expanded sharply as a result of high oil prices and imports of construction material. Government spending on social needs, subsidies, and civil servant salaries have created a large budget deficit and inflation has picked up sharply, reaching nearly 13% in October 2008 due to high oil and food prices. Diversifying beyond tourism and fishing, reforming public finance, and increasing employment are the major challenges facing the government. Over the longer term Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is 1 meter or less above sea level.
GDP (purchasing power parity):
$1.723 billion (2008 est.) country comparison to the world: 187 $1.628 billion (2007 est.)