Maldives Ready to Weather Economic Shocks, Says Finance Minister Zareer

Finance Minister Hassan Zareer has said the Maldives is taking the necessary steps to overcome the economic difficulties that could arise from wars being fought in various parts of the world. The minister made the remarks in a special interview given to Reuters. Zareer, the minister responsible for finance and government companies, said that while wars in different parts of the world are having some impact on the number of tourists arriving in the Maldives, economic difficulties have also been created by the rising cost of purchasing oil. He noted that, in addition to the Maldives, several other countries around the world are also enduring a similar situation. In the interview with Reuters, the finance minister said the global economic slowdown will also affect the Maldives, but that the government is carrying out the work needed to overcome these challenges. He noted that measures such as reducing government expenditure, along with other steps that need to be taken in the fiscal sector, are being implemented. The minister said that beyond the steps being taken by the government, assistance from international financial institutions is also needed to overcome the situation. He said consultations are ongoing to seek assistance from the World Bank and other financial institutions. The minister said that with the measures being taken by the government, economic growth is expected to rise to 3.8 percent next year, and that the government projects economic growth will stand at 6.8 percent in 2028. He also said the aim is to expand investment in renewable energy to 33 percent by the end of 2028, and to strengthen tourism. To achieve these goals, the World Bank has decided to provide USD 250 million over a period of two to three years. In addition, a five-year framework agreement worth USD 1.5 billion was drawn up with the International Islamic Trade Finance Corporation last month.