Policy
The traditional subsistence economy that prevailed in the country was based mainly on fisheries, agriculture and the export of other marine products. The main exports being dried and salted fish, coconuts, shells, tortoise shells, coir rope, and ambergris. Rice, flour, sugar and other consumer products were imported.
Today, the country's economy has undergone a major structural transformation. The reliance on the primary fisheries sector has given way to a service sector based economy, driven by tourism. Distribution, transportation and construction have also expanded significantly. The economy remains highly sensitive to the vagaries of the international economy on two accounts: economic developments in the tourism generating countries, and changes in international tuna prices.
The Maldivian economy has grown at an average annual rate of 10% since 1980, and continues to maintain an average of over 8%, not falling below 6% in any one year. As a result of this growth, GDP per capita (measured as Maldivian nationals) reached about US$768.3 in 1995.
GROSS DOMESTIC PRODUCT
Real GDP has continued to grow at an average annual rate of 8.3% over the period, 1986-96. Over the same period, real GDP/capita has averaged a growth of 5.2 percent per annum. Overall growth has been associated with a dramatic shift in the structure of the economy away from primary activity toward secondary and tertiary activities. ECONOMIC POLICY
The Maldivian government's developmental philosophy centers mainly on increasing growth in key sectors, achieving self-sufficiency and stimulating economic and social growth in the outer atolls. The fiscal and monetary policy focuses on domestic resource mobilization and continuing reforms to the fiscal and monetary system. Foreign currency rates fluctuate to market demand. As a result of the government's economic policy, aimed at regulating the future economic and social development of the country, the Maldives has experienced an unprecedented rapid economic growth in the last twenty five years. |
