© [2025] International Bank for Reconstruction and Development / The World Bank1818 H Street NWWashington DC 20433Telephone: 202-473-1000Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations,and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board ofExecutive Directors, or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this workand does not assume responsibility for any errors, omissions, or discrepancies in the information, or liabilitywith respect to the use of or failure to use the information, methods, processes, or conclusions set forth. Theboundaries, colors, denominations, and other information shown on any map in this work do not imply anyjudgment on the part of The World Bank concerning the legal status of any territory or the endorsement oracceptance of such boundaries. Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privilegesand immunities of The World Bank, all of which are specifically reserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of itsknowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as fullattribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications,TheWorldBank,1818HStreetNW,Washington,DC20433,USA;fax:202-522-2625;e-mail:pubrights@worldbank.org. Photo Credits Cover,PartsA.1andA.2:Erdem Atas Preface The Maldives Development Update (MDU) has two main goals. First, it takes the pulse of the Maldivian economy byoutliningkey developments over the past 12 months. Placing these in a global context, and based on these recentdevelopments,the MDUthenanalyzes the outlook over the mediumterm. Second,every other edition oftheMDUprovides a more in-depth investigation of selected economic and policy issues. It has a wide audience includingpolicymakers, policy analysts from think tanks ornon-governmental organizations, and business and financial sectorprofessionals interested intheeconomic developmentofMaldives. The MDU was prepared byRuijie Cheng,Erdem Atas, Richard Walker, and Arvind Nair(Economic Policy, South Asia Region).The team is grateful toNandini Krishnan,Marta Schoch(Povertyand Equity),Karina Baba(Finance, Competitiveness, andInnovation),andTasneemDudhia(International Finance Corporation)for their inputs to the publication. The team thanksMathewVerghis (Director,Prosperity, South Asia Region),DavidSislen(Country Director for Maldives, Nepal,and Sri Lanka),GevorgSargsyan(Country Manager, Maldives and Sri Lanka), and Shabih Ali Mohib (Practice Manager,Economic Policy, SouthAsia Region) for their guidance. Yasindu AmarasingheandTracey AnnPlunkettprovided valuable administrative supportand helped with the format and layout of the report, whileAliNaafizled the dissemination efforts. The report was prepared based on published data available on or beforeMarch 1, 2025. Data sources include the WorldBank, International Monetary Fund, Ministry of Finance, Maldives Monetary Authority, Maldives Bureau of Statistics,Ministry of Tourism, and press reports. Previous report editions:•October2024:Maldives Development Update: Seeking Stability in Turbulent Timeshttps://openknowledge.worldbank.org/entities/publication/44b2ff24-f864-4065-aee7-fc03b21b9fe8•May 2024: Maldives Development Update:Scaling Back and Rebuilding Buffershttps://openknowledge.worldbank.org/entities/publication/acbc24eb-8fc1-4b94-8492-a41e4e41dd2f•October 2023:Maldives Development Update: Batten Down the Hatcheshttps://openknowledge.worldbank.org/server/api/core/bitstreams/4fdca0d7-c521-4bf0-900b-88fad30ad00e/content•April 2023: Maldives Development Update: Navigating A Tight Linehttps://openknowledge.worldbank.org/handle/10986/39627 To receive the MDU and related publications by email, please emailinfomaldives@worldbank.org.For questions andcomments, please emailrcheng@worldbank.organdeatas@worldbank.org.. For information about the World Bank and its activities in Maldives, please visit:https://www.worldbank.org/en/country/maldives @WorldBank,@WBMaldives, follow hashtag#MDUAM24www.facebook.com/WorldBankSouthAsiainstagram.com/worldbank/www.linkedin.com/company/the-world-bank Table of Contents Preface………………………………………………………………………………………………………………….iiAbbreviations.........................................................................................................................................................iiiTable of Contents...................................................................................................................................................ivEXECUTIVE SUMMARY.....................................................