Maldives Forecasts 5.3% Economic Growth in 2026, Backed by Tourism and Airport Expansion

Finance Minister Moosa Zameer announced that the Maldives economy is expected to grow by 5.3 percent in 2026, driven largely by developments in tourism and infrastructure.

Presenting the national budget for the upcoming year, Minister Zameer said the government has submitted a proposed MVR 64.2 billion budget to Parliament — an increase of nearly MVR 8 billion compared to this year’s allocation.

Economic Outlook: Growth Driven by Tourism and Infrastructure

According to Minister Zameer, the economy is expected to expand at an average rate of 4.9 percent over the following two years. The forecast reflects optimism surrounding major tourism and transport infrastructure projects, which are anticipated to boost activity in multiple sectors.

He noted that the new Velana International Airport (VIA) terminal, set to become operational soon, along with continued upgrades to regional airports, will significantly enhance connectivity and capacity. These developments are expected to attract more visitors, further strengthening tourism — the backbone of the Maldivian economy.

While the Minister stopped short of specifying a target figure for tourist arrivals next year, the country has already welcomed 1.5 million visitors in the first eight months of this year, marking a 9.4 percent increase compared to the same period in 2023.

Construction and Real Estate Sectors to See Steady Growth

In addition to tourism, the construction and real estate sectors are also expected to contribute to overall economic performance. Based on government Public Sector Investment Projects (PSIP) for the coming years, these industries are projected to grow by an average of 3.1 percent annually.

Minister Zameer said sustained investment in public infrastructure will continue to generate economic activity, employment, and regional development.

Revenue Forecast: MVR 40.2 Billion Expected in 2026

The Finance Minister revealed that total government revenue for 2026 is projected to reach MVR 40.2 billion. He highlighted that the key difference compared to the current fiscal year is the exclusion of grant-based income.

• Tax revenue is estimated at MVR 31.3 billion

• Non-tax revenue is projected at MVR 8.7 billion

• Revenue from grants is expected to reach MVR 373.6 million

Minister Zameer emphasized the government’s focus on maintaining fiscal discipline while ensuring sufficient investment to support sustainable growth.

Despite fiscal pressures and global uncertainties, the Maldives’ projected growth rate signals a cautiously optimistic outlook for 2026. With continued momentum in tourism and infrastructure development, the nation aims to balance its economic expansion with financial stability.