Economy of the Maldives

This is a chart of trend of gross domestic product of Maldives at market prices estimated by the International Monetary Fund with figures in millions of rufiyaa. The Maldives has experienced relatively low inflation throughout the recent years. Real GDP growth averaged about 10% in the 1980s. It expanded by an exceptional 16.2% in 1990, declined to 4% in 1993, and, over the 1995–2004 decade, real GDP growth averaged just over 7.5% per year. In 2005, as a result of the tsunami, the GDP contracted by about 5.5%; however, the economy rebounded in 2006 with a 13% increase. The following table shows the main economic indicators in 1980–2020. ==Economic sectors==

Tourism Fishing Industry The industrial sector provides only about 7% of GDP. Traditional industry consists of boat building and handicrafts, while modern industry is limited to a few tuna canneries, five garment factories, a bottling plant, and a few enterprises in the capital producing PVC pipe, soap, furniture, and food products. There are no patent laws in the Maldives. Financial The banking industry dominates the small financial sector of the Maldives. The country's seven banks are regulated by the Maldives Monetary Authority. While formerly the Maldives had no income, sales, property, or capital-gains taxes, and was considered to have the simplest tax code in the world, now taxation is regulated by the Maldives Inland Revenue Authority (MIRA). In 2011, the Tax Justice Network gave the Maldives a "secrecy score" of 92 on its Financial Secrecy Index - the highest score in that category of any actively-ranked country; however by 2022 with a secrecy score of 75, no longer ranked in the top ten. However, in both 2011 and 2022, the Maldives' minor market share put it near the bottom of the overall weighted lists. A recurrent trend of Beijing leveraging its economic influence to attain geopolitical goals is observable. This pattern is not confined solely to small island nations in the Indian Ocean, like the Maldives and Sri Lanka, but extends to the wider Indo-Pacific region, encompassing countries with sizeable and advanced economies as well. The Maldives government is grappling with concerns about falling into a potential debt entrapment with China. Shipping Beginning in the 1990s, the Port of Male received over £10 million in loans from the Asian Development Bank designated for infrastructure upgraded. The ADB notes that from 1991 to 2011, due to the loans, the ports annual throughput in freight tons equalled 273,000. By 2011 that number reached 1 million. The ADB also provided training for port authority staff to increase efficiency. ADB and the Government of Maldives, in a joint report address ship turn-around, "What used to take about 10 days in 1991 was achieved in 3.8 days by 1997, and about 2.6 days by 2014". ==Environmental concerns==

There is growing concern towards the coral reef and marine life due to coral mining (used for building and jewellery making), sand dredging, solid waste pollution and oil spills from boats. Mining of sand and coral has destroyed the natural coral reef that once protected several important islands, now making them highly susceptible to the erosive effects of the sea. The destruction of large coral beds due to heat is also a growing concern. In April 1987, high tides swept over the Maldives, inundating much of Malé and nearby islands which prompted Maldivian authorities to take global climatic changes seriously. An INQUA research in 2003 found that actual sea levels in the Maldives had dropped in the 1970s and forecasts little change in the next century. There is also concern over the questionable shark fishing practices in place in the island. Shark fishing is forbidden by law, but these laws are not enforced. The population of sharks has sharply decreased in recent years. The Asian brown cloud hovering in the atmosphere over the northern Indian Ocean is also another concern. Studies show that decreased sunshine and increased acid rain source from this cloud. == Energy ==

While electricity in the Maldives has historically come entirely from diesel generators, solar power has been increasingly adopted to avoid high fuel costs. The resort on Dhiddhoofinolhu claims to have the world's largest oceanic floating solar plant, with 678 kW enough to supply peak demand. The country's Environment Ministry has deployed solar–battery–diesel hybrid systems across the outer islands to reduce subsidies for imported diesel and promote low-carbon energy independence. ==Poverty, income and gender inequality==

Maldives achieved their Millennium Development Goal (MDG) of halving the proportion of people living under the poverty line to 1% as of 2011. Starvation is non-existent, HIV rates have fallen and malaria has been eradicated. Despite these accomplishments and progressive economic growth, developmental issues remain. In particular, the country needs to address income and gender disparities. Development in Maldives has occurred predominantly in the capital Malé; islands outside the capital continue to encounter high poverty vulnerability, lower per-capita income, lower employment and limited access to social services. Poverty and Income Disparity The factors that have led to Maldivians falling into or remaining in poverty are: The scarcity of land and water, the underdeveloped farming practices and absence of support services in atolls has meant low production and thus low incomes in these regions. In 2011, President Nasheed said, "The most important facility for a country's development is its people... and since women are half of the population in any country, for a certainty their full participation will speed up the pace of development." ==See also==