Governor of Maldives Monetary Authority MMA Ali Hashim says if tourist arrivals continue to decline amid the Covid-19 crisis, the Country’s GDP will plummet to minus 9 percent.
He made the forecast while speaking at Parliament’s Committee on Economic Affairs.
The Governor presented the economic forecast in the worse case scenario of the Covid-19 global pandemic in Maldives.
Hashim made this forecast after comparing the economic impacts of the 2008 global financial crisis as well as the 2004 Tsunami crisis.
He said the Tsunami in 2004 had made the biggest impact on the country’s GDP in recent times with a fall of 17.7 percent recorded. He also said during the 2008 global financial crisis GDP fell by 7.7 percent and if Maldives had to combat the worst-case scenario of the Covid-19 crisis then the GDP will plunge by 9 percent. He predicted that at that stage the country’s situation is expected to be dire.
Governor of MMA said the economic impact of the worst-case scenario was based on zero tourist arrival or a huge decline in arrivals. He added that instead of being discouraged by this scenario, the focus should now be on reviving the economy with the help from foreign investments.
