VIA expansion will help maintain GDP pick-up: World Bank

Velaana International Airport/ Photo: MACL

The World Bank says the expansion of Velaana International Airport will help maintain the forecast rate of GDP pickup as the airport expansion boosts tourism.

The Bank said this in its twice-a-year country economic update.

World Bank’s latest Maldives Development Update: Seeking Stability in Turbulent Times notes Real GDP growth of Maldives is projected to be 4.7 percent in 2024, followed by similar levels in 2025 and 2026.

It said that this will be supported by the completion of the new terminal at Velana International Airport by mid-2025, which is expected to lead to further increases in tourist arrivals.

The World Bank’s update indicates the Maldivian economy grew by 9.8 percent (y-o-y) in the first quarter of 2024 (2024Q1), primarily driven by strong activity in the tourism sector, which directly accounts for a quarter of the economy.

It said tourism’s expansion of 9.3 percent in Q1, translated into stronger growth in transportation, communication, and the domestic trade subsectors.

The World Bank added that tourism growth was driven by increased arrivals from China and sustained arrivals from Russia, Europe, and new markets.

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