The Maldives’ economic growth is projected to recover to between 3.9 and 6.8 per cent in 2027, following a sharp slowdown this year amid the conflict in the Middle East, Finance Minister Hassan Zareer has said.

Presenting the proposed 2027 State Budget to Parliament, the Minister said economic growth is expected to range between 0.6 and 1.8 per cent in 2026, down from 6.3 per cent recorded last year. The initial growth forecast for this year was 5.3 per cent.

He said fiscal policies for 2027 and the medium term had been formulated following an in-depth assessment of the country’s economic outlook and fiscal position.

International financial institutions project global economic growth of 3.4 per cent next year.

The Minister added that inflation in the Maldives is forecast to stand at 1 per cent in 2027.