The World Bank has projected that the Maldivian economy will grow by 3.9 per cent in 2026, according to its latest economic update.

The World Bank estimates economic growth at 4.2 per cent for the current year but expects a slowdown next year. It said the decline is mainly due to slower growth across most sectors of the economy, with the exception of tourism.

The projection is lower than the Finance Ministry’s forecast, which estimates economic growth of 5.3 per cent in 2026.

The World Bank has also projected inflation in the Maldives to reach 4.2 per cent in 2026. In addition, the fiscal deficit is expected to widen to 13 per cent of gross domestic product next year.