May 16, 2018

Global financial information services leader Fitch Ratings has given Maldives  a B+ rating with Outlook stable. This clearly shows that the events of the past few months have had no negative impact on the Maldivian economy, as many predicted. The report states “The ‘B+’ rating balances the Maldives’ strong GDP growth, high government revenue generated by a prosperous tourism sector and favourable structural indicators, such as per capita GDP, against a high government debt burden and low foreign-reserve buffers.”

The report further states “Economic growth in the Maldives is strong, as illustrated by a five-year average real GDP growth of 6.0% compared with the median of 3.4% for peers in the ‘B’ rating category.”

While mentioning that tourism would have been impacted by the travel advisories issued by some countries the report qualifies “Available data on foreign arrivals and tourism-related government revenue do not yet indicate any negative effect on tourism earnings. There is a significant distance between the luxury resorts and the capital island Male, where most of the political agitation normally takes place and which many tourists never visit”

Link to the report: https://www.fitchratings.com/site/pr/10030799