However, the Maldives' minor market share put it near the bottom of the overall weighted lists. The Tax Justice Network gave the Maldives a "secrecy score" of 92 on its 2011 Financial Secrecy Index - the highest score in that category of any actively-ranked country. The Maldives has no income, sales, property, or capital-gains taxes, and has been considered to have the simplest tax code in the world. The country's seven banks are regulated by the Maldives Monetary Authority. The banking industry dominates the small financial sector of the Maldives. There are no patent laws in the Maldives. Traditional industry consists of boat building and handicrafts, while modern industry is limited to a few tuna canneries, five garment factories, a bottling plant, and a few enterprises in the capital producing PVC pipe, soap, furniture, and food products. The industrial sector provides only about 7% of GDP. The following table shows the main economic indicators in 1980–2020. In 2005, as a result of the tsunami, the GDP contracted by about 5.5% however, the economy rebounded in 2006 with a 13% increase. It expanded by an exceptional 16.2% in 1990, declined to 4% in 1993, and, over the 1995–2004 decade, real GDP growth averaged just over 7.5% per year. Real GDP growth averaged about 10% in the 1980s. The Maldives has experienced relatively low inflation throughout the recent years. This is a chart of trend of gross domestic product of Maldives at market prices estimated by the International Monetary Fund with figures in millions of rufiyaa. Taxes on the tourist industry have been plowed into infrastructure and it is used to improve technology in the agricultural sector. Limitations on potable water and arable land, plus the added difficulty of congestion are some of the problems faced by households in Malé.ĭevelopment of the infrastructure in the Maldives is mainly dependent on the tourism industry and its complementary tertiary sectors, transport, distribution, real estate, construction, and government. The population is scattered throughout the country, and the greatest concentration is on the capital island, Malé. Maldivian authorities are concerned about the impact of erosion and possible global warming in the low-lying country.Īmong the 1,190 islands in the Maldives, only 198 are inhabited. Industry in the Maldives consists mainly of garment production, boat building, and handicrafts. Subsequently, it has liberalized regulations to allow more foreign investment.Īgriculture and manufacturing play a minor role in the economy, constrained by the limited availability of cultivable land and shortage of domestic labour. The economic reform program by the government in 1989 lifted import quotas and opened some exports to the private sector. Over 90% of government tax revenue flows in from import duties and tourism-related taxes.įishing is the second leading sector in the Maldives. It powered the current GDP per capita to expand 265% in the 1980s and a further 115% in the 1990s. Tourism is the largest industry in the Maldives, accounting for 28% of GDP and more than 60% of the Maldives' foreign exchange receipts. Nowadays, the mixed economy of Maldives is based on the principal activities of tourism, fishing and shipping. Local and foreign trading ships used to load these products in the Maldives and bring them abroad. In ancient times, Maldives were renowned for cowries, coir rope, dried tuna fish (Maldive fish), ambergris ( maavaharu) and coco de mer ( tavakkaashi). All values, unless otherwise stated, are in US dollars.
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