Maldives Introduction Key Economic Facts Risk Assessment (Provided by Coface) Maldives is an island nation in the Indian Ocean formed by a Income Level (by per capita Upper Middle Income Country rating: C - A very uncertain political and economic chain of 1,900 coral islands grouped into 26 atolls southwest GNI): outlook and a business environment with many troublesome of Sri Lanka and India. The archipelago has a strategic GDP, PPP (current international $10.83 billion (2019) weaknesses can have a significant impact on corporate location astride and along major sea lanes $): in Indian Ocean. The government system GDP growth (annual %): 6.99% (2019) payment behavior. Corporate default probability is high. is a republic; the chief of state and head GDP per capita, PPP (current $20,395.49 (2019) Business Climate rating: C - The business environment is of government is the president. Maldives international $): difficult. Corporate financial information is often unavailable has a mixed economic system which External debt stocks, total $2,679,184,642.90 (2019) and when available often unreliable. Debt collection is includes a variety of business and fiscal freedom, combined (DOD, current US$): unpredictable. The institutional framework has many with centralized economic planning and government Manufacturing, value added (% 2.04% (2019) regulation. Maldives is a member of the South Asian of GDP): troublesome weaknesses. Intercompany transactions run Association for Regional Current account balance (BoP, -$1.50 billion (2019) major risks in the difficult environments rated C. current US$): Cooperation (SAARC). Strengths Inflation, consumer prices 0.22% (2019) (annual %): • Good relationship with both regional powers: China Labor force, total: 306,070 (2020) and India Unemployment, total (% of 6.43% (2020) • Expanding tourism potential in uninhabited islands total labor force) (modeled ILO estimate): • Improving transport infrastructure Imports of goods and services $4.40 billion (2019) • Improving relations with the West, reliable support Location: Southern Asia (current US$): from multilateral institutions Capital City: Male (+5 GMT) Exports of goods and services $3.89 billion (2019) Weaknesses (current US$): Chief of State: President Ibrahim "Ibu" Mohamed • Extraordinary dependence on tourism Solih • Geographical isolation Head of Govt.: President Ibrahim "Ibu" Mohamed GDP Composition % Solih Agriculture Services Industry Manufacturing • Precarious public finances Currency: Maldivian Rufiyaa (MVR) • Political volatility 70 Major Languages: <p>Dhivehi (official, dialect of Sinhala, • Extraordinary exposure to climate risk (rising sea script derived from Arabic), English 12 (spoken by most government 5 2 level) officials)</p> *Although Manufacturing is included in the Industry figures, it is also separately • Environmental issues (pollution) Primary Religions: <p>Sunni Muslim (official)</p> reported because it plays a critical role in economy. U.S. Embassy Calling Code: 960 Rankings Voltage: 230 Index Rank U.S. Mission in Maldives Corruption Perceptions Index 130 / 180 210 Galle Road Key Websites Index of Economic Freedom 140 / 179 Colombo 03 Sri Lanka Main Government Page: presidency.gov.mv International Logistics Performance Index (LPI) 86 / 160 Phone: +94 (11) 249-8500 Commerce Ministry: trade.gov.mv KOF Index of Globalization 155 / 185 Investment Promotion investmaldives.gov.mv https://mv.usmission.gov Agency: Country Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV.