Maldives Records Strong Economic Growth in Q2 2025, Driven by Tourism, Fisheries and Construction

The Maldivian economy posted solid growth in the second quarter of 2025, propelled by robust performances in the tourism, fisheries, and construction sectors, according to the latest Maldives Economic Update published by the Maldives Monetary Authority (MMA).

Tourism remained the leading driver of economic activity, with total tourist arrivals reaching 475,708 during the quarter — a 16% increase compared to the same period last year. By June, total arrivals had surpassed one million, marking the fastest time the Maldives has ever achieved this milestone. China emerged as the top source market, overtaking Russia and the United Kingdom, while European visitors continued to form the majority of arrivals.

The fisheries sector recorded exceptional performance, with total fish purchases soaring by 101%, led by a remarkable 133% surge in skipjack tuna. Meanwhile, the construction sector maintained strong momentum, supported by large-scale infrastructure and resort development projects, and the real estate market continued to expand steadily.

Inflation eased to 4.6% in Q2, down from 5.3% in the previous quarter, reflecting lower food and energy prices. On the fiscal front, the government’s financial position improved notably. Total revenue (excluding grants) rose to MVR 8.9 billion, while total expenditure (excluding debt amortisation) fell by MVR 1.6 billion, largely due to a slowdown in capital spending.

The financial sector remained stable and well-capitalized, with a 50% capital adequacy ratio and continued growth in lending. The country’s international reserves strengthened to US$832.4 million, bolstered by a US$400 million currency swap arrangement with the Reserve Bank of India.

Despite ongoing global economic uncertainties, the Maldives continued to demonstrate resilience and steady growth. The MMA projected real GDP growth of around 4.5% for 2025, supported by record tourism arrivals, a thriving fisheries industry, improved fiscal performance, and moderating inflation.

The central bank concluded that the overall economic outlook for the remainder of 2025 remains positive, underscoring the Maldives’ sustained recovery and continued confidence in its key sectors.