Maldives, with a population of 523,787, is ranked 163rd in the world, just behind Malta. Located in the Indian Ocean, it covers a total area of 300 square kilometers, ranking 180th globally, just below Malta.
In 2022, Maldives, with a GDP of 6,170,638,746.97 USD, holds the 152nd position globally, trailing behind Montenegro with a GDP of 6,229,801,580.79 USD. The country’s GDP per capita stands at 11,780.82 USD, ranking 70th worldwide, falling short of Nauru with a GDP per capita of 11,970.94 USD.
Maldives’ economy is characterized by its strong tourism sector, fisheries industry, and ongoing infrastructure development projects. The nation’s economic position reflects its resilience and potential for further growth in the coming years.
What are the economic activities of Maldives?
- Primary activities: 3% of GDP.
- Secondary activities: 16% of GDP.
- Tertiary activities: 81% of GDP.
Primary Sector of Maldives
The primary sector in Maldives, with 19.67% agricultural land, thrives due to its tropical climate and abundant natural resources. Main agricultural products include fruits, vegetables, nuts, meats, tomatoes, bananas, maize, pulses, coconuts, and papayas.
Despite contributing only 3% to GDP, agriculture plays a crucial role in the economy. The diverse range of crops and animal products highlights the sector’s importance, providing food security and livelihoods for many Maldivians.
The country’s geological diversity, comprising of numerous atolls and coral reefs, greatly influences resource availability. The primary sector heavily relies on fish, contributing significantly to the economy through fishing activities and exports.
Secondary Sector of Maldives
What is the secondary sector or what are secondary activities?
The secondary sector involves industries that transform raw materials from primary activities into finished products for consumption. In the Maldives, the main industrial products include fish processing, shipping, boat building, coconut processing, woven mats, rope, handicrafts, coral, and sand products. These industries play a crucial role in the country’s economy and provide valuable goods for both domestic consumption and export.
Manufactures in Maldives’ total exports in 2023 accounted for only 0.21%, indicating their minimal significance in the country’s export economy.
Tertiary sector of Maldives
What is the tertiary sector or what are tertiary activities?
The tertiary sector in the Maldives encompasses services that provide knowledge and time to enhance productivity and meet needs. This includes various activities such as healthcare, education, banking, tourism, transportation, telecommunications, and security services. These services play a crucial role in the Maldivian economy by offering intangible goods like expertise and advice to both consumers and businesses, contributing significantly to the country’s development and growth.
In particular, The Maldives heavily relies on tourism, contributing significantly to its economy. With 1,703,000 annual arrivals, equating to a staggering 3.2513 tourist arrivals per capita, the industry thrives. Renowned attractions like the breathtaking Bioluminescent Beach and the iconic Vaadhoo Island, famous for its mesmerizing sea of stars, draw visitors worldwide.
Another example of tertiary economic activity is the mobile cellular sector, with 715,000 subscriptions, enhancing connectivity and supporting technological growth. This infrastructure fosters innovation and digital services, crucial for economic development.
International Trade of Maldives
Import Activities of Maldives
The import activities of the Maldives are of high importance, accounting for 56.54% of its GDP in 2023, totaling $3.49 billion.
Maldives relies heavily on imports for goods such as refined petroleum, ships, aircraft, plastic products, and broadcasting equipment. Key import partners include India, China, UAE, Oman, and Malaysia, with India and China sharing the largest portion at 16% each.
Exports Activities of Maldives
Maldives’ total exports in 2023 amounted to 162,055,101.628. With exports contributing only 2.63% to the GDP, the importance is low, indicating potential for growth and economic diversification.
Maldives primarily exports aircraft, fish, natural gas, scrap iron, and refined petroleum. Its key export partners are India (71%), Thailand (12%), Germany (3%), Oman (2%), and the UK (2%).
Maldives economy challenges in 2024
In 2024, Maldives faces economic challenges due to high public debt, corruption, and the impact of COVID-19. The country’s tourism, fishing, and shipping industries are struggling, leading to ongoing deflation and a significant increase in poverty since the pandemic began.
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