HULHULE-MALE’ BRIDGE PROJECT

EIA for the proposed Hulhule-Male’ Bridge Project
4.9.2 Economic activities
The Maldives is an upper middle-income developing country. The GDP of the Maldives has
been increasing significantly over the past four decades. The GDP growth averaged at 7.69%
from 1997 to 2014. The real GDP recorded in 2014 was registered at MVR 29 billion equivalent
to USD 2.3 billion. The registered economic growth in 2014 was 8.5%, which is a decline form
8.8% in the previous year. The real GDP per capita in 2014 was USD 5,036.2 equivalent to
MVR 64,464.00
The largest contributing sector to the Maldives economy is tourism (30% of GDP). The tourism
sector observed a growth of 6.5% in 2014. Tourist arrivals were recorded at 1.2 million by the
end of 2014. Tourist receipts grew by 13% reaching up to USD 2.6 billion in 2014. As of 2014,
there are total 508 registered tourist establishments in the Maldives including 112 island resorts,
216 guest houses, 161 safari vessels and 19 hotels.
Contribution from the fisheries industry to the Maldivian economy is 1% of GDP in 2014. The
fisheries sector observed a decline over the past decade owing to boom in tourism and
construction industries. However, fisheries sector remain to be the second highest source of
foreign currency accounting for 47% of merchandise exports as well as a main source of income
for some islands, especially in regions where tourism is less developed and fishing is good. The
observed decline of 6.4% in fisheries sector in 2014 is mainly owing to decline in fisheries and
fish related manufacturing and dip in international tuna prices in 2014 (MMA 2014).
Construction sector observed a rebound, with growth of 20.6% in 2014 after observing negative
growth in the past two consecutive years. In March 2014, the restriction of export of stone
aggregates to the Maldives from India was waived. The recovery from severe shortage in the
supply of construction materials largely resulted in the growth of the sector resulting from
resumption of large-scale public sector infrastructure development projects and housing projects.
The airline movements by international carriers resulting mainly from growth in tourist arrivals
observed an increase in 7% concurrent to growth in international tourist arrivals to the Maldives
in 2014. Transport sector observed a growth of 11.2% in 2014.
At the end of 2014, retail trade sector totalled MVR 2.5 billion, performing a growth of 2%
compared with 2013. The growth was mainly resulting from a robust tourism and construction
sector in 2014. Commercial bank credit to the sector grew at an average of 8% in 2014 compared
with 2% in 2013. Furthermore, private sector imports (excluding tourism) rose by 16% in 2014.
In contrast the growth was 6% in the previous year.
Inflation for the economy was managed at 2.4% in 2014 owing to decline in global food prices
and oil prices. Additionally stable fish prices in the local market, which is very volatile
Prepared by: CDE Consulting & China Shipping Environment Technology
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