Maldives has never been in such a dire economic state: Governor

Maldives Monetary Authority (MMA) Governor Dr Fazeel Najeeb said yesterday that the Maldives has never been in such a dire economic state before. Speaking during the ‘Finance Forum’ held by the Pension Administration office in Bandos Island Resort yesterday, Governor claimed that the flailing economic situation in the country was due to expenditure exceeding revenue.

“The Maldives is now in a dangerous economic situation never before seen in recent history. Expenditure in the country has exceeded its income; as a result budget deficit is increasing. From November 2010 inflation has also been going up,” he said.

He revealed that 63.1 percent of the total Gross Domestic Product (GDP) of 2011 was spent as State expenses. Governor further noted that the percentage was the fifth lowest in the world and hence prompted a rethink about the whole situation.

Fazeel further stressed that though Cuba and Zimbabwe were below Maldives in the list, it was something the country should be hardly proud of and noted that the value of the Maldivian currency remaining low for extended periods of time was also something that had various economic consequences.

Speaking with regard to the pension fund, Governor stressed on the importance of utilizing the funds in ways that would maximize the economic benefit of the country.

To that end, the various experts who spoke in the ‘Finance Forum’ had noted that means of investing over MVR50 million received to the pension fund every month must be identified that would shape the economy of the country.

The experts further called on legislators in Parliament to pass bills while considering the economic advantages that can be sought for the country.

Pension office revealed that the forum scheduled to be held annually, would identify the various financial issues faced by the country while possible solutions would also be discussed in resolving such issues.
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