Asian Development Bank and Maldives: Fact Sheet

Abstract

Updated yearly, this ADB Fact Sheet provides social and economic indicators on the Maldives as well as concise information on ADB's operations in the country and contact information. Poverty reduction in the Maldivian context primarily means decreasing regional disparities in living conditions, since poverty is related to the remoteness of the islands and the lack of services in the atolls. The tsunami that struck in December 2004 considerably constrained government’s development momentum. Although the loss of lives was comparatively small, the disaster resulted in total damages of nearly $0.5 billion, equivalent to some 62% of the country’s gross national product. The Maldives is currently facing a large fiscal deficit, with about half of it stemming from tsunami-related rehabilitation expenditure and the rest due to expansion of government policies, including subsidization of social services. Tourism and fisheries, the two main economic sectors, have now recovered from the tsunami but the fiscal situation remains difficult and limits the Government’s economic options.