Maldives economy slows in 2007: central bank

As reported by AFP the economic growth in the Maldives slowed to 6.6 percent in 2007. AFP mad the statement referring to the Maldivian Central Bank which blamed the slow down to high oil prices and poor fish catch.

Economic growth, down from a staggering 19 percent in 2006, was however better than the 5.5 percent expansion forecast by the International Monetary Fund.

The Maldives Monetary Authority, however predicted the economy will surge by 9.5 percent in 2008, led by a booming tourism and construction industry.

Tourism, which accounts for about a third of an economy of just under a billion dollars, was forecast to reach 600,000 visitors in 2007 after already grown 13 percent to 553,900 visitors from the January to October period reports AFP.

The government has announced plans to build 10 regional airports to support 35 new island resorts that are being developed.

According to AFP advance lease rentals from the new resorts enabled the country to post a record 48 million dollar balance of payment surplus in 2007.

But during the 11 months to November last year, the fish catch had slumped 39 percent as against the corresponding period 2006, a statement said.

The low catch also dragged fish export earnings, the main revenue generator behind tourism, down 17 percent to 94.3 million dollars from January to November last year against the same period in 2006 said AFP.

Maldives brings in everything from staple food to resort supplies, construction materials and petroleum products.

This also drove up consumer prices with inflation surging to 9.5 percent in November 2007, from a 3.7 percent year-end figure in 2006.

Home to 369,000 Sunni Muslims, the Maldives has South Asia's highest per capita income of 3,400 dollars in 2007, with earnings forecast to top 4,000 dollars this year, the Maldives Monetary Authority said reports AFP.