Male: The Maldives' economy will be the worst hit as a result of the COVID-19 pandemic, the World Bank has announced.

The report issued by the World Bank, an international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects, said the economies of South Asian countries will regress to levels not witnessed over the past 40 years, and that the Maldives will suffer the most economic setbacks.

While the country's GDP is expected to fall between 8.5 and 13 percent, the reason for this sharp decline will be the effects on the tourism sector as a result of COVID-19.

Restrictions on international travel will be especially consequential for Maldives and Nepal, both being countries that heavily depend on tourism, said the World Bank report that came out on Sunday.

The report said that the GDP of Afghanistan, Pakistan and Sri Lanka are also likely to suffer a major blow.