This year, the Maldives is projected to be the eighth most indebted nation globally in terms of economic output, as per the latest prediction by the International Monetary Fund (IMF).

The IMF’s April Economic Outlook forecasts that the Maldives’ debt-to-GDP ratio will hit 129.4 percent by the conclusion of 2026, positioning it as South Asia's most indebted nation.

According to the countries mentioned in the report, Maldives is anticipated to be the eighth in the world for debt compared to GDP. This year's countries that have the highest debt-to-GDP ratios are:

Japan: 204.4%

Singapore: 171.9%

Sudan: 169.1 percent

Bahrain: 152.4%

Italy: 138.4 percent

Greece: 136.9 percent

Sénégal : 132,3 pour cent

Maldives: 129.4%

United States: 125.8%

Ukraina: 122,6 процента

IMF data gathered since 1997 indicates that the Maldives' debt-to-GDP ratio reached its highest point during the pandemic in 2020, hitting 155.7 percent. The proportion decreased in 2021 and 2022, then increased once more in 2023 to 122.4 percent. After the year of the presidential election, the percentage rose to 133.3 percent in 2024.

Despite the debt ratio decreasing to 125.4 percent last year, the IMF predicts it will increase once more by 2026.

The IMF had earlier estimated that the economy of Maldives would expand by four percent or more in the current year. Nonetheless, worldwide economic disruptions caused by the US-Israeli conflict with Iran on February 28 have resulted in updated projections.

In its April projections, the IMF estimated Maldives’ economic growth at three percent, in contrast to the five percent growth achieved the previous year.

A mission from the IMF went to the Maldives from the 4th to the 14th of last month to evaluate the nation’s economic condition. In its final statement, the Fund observed that while the conflict in the Middle East has adversely impacted tourism and the overall economy, it stays cautiously hopeful and anticipates growth will restart next year due to robust policy actions.

The April report from the IMF predicts that the economy of Maldives will expand by 4.6 percent in 2027.

Regardless of this perspective, the IMF has emphasized the necessity for the government to decrease public expenditure. Suggested actions involve reassessing subsidies to focus on the most at-risk groups and restructuring state-owned enterprises (SOEs) to lessen financial burdens. The Fund emphasized the significance of investing in renewable energy to reduce fuel usage.

This year, the government approved a budget at a record level, mainly due to USD 1.1 billion in debt commitments.