After facing a contraction of around 30 percent in its economy in 2020, the Maldives’s GDP is projected to grow by an impressive 13.5 percent in 2021, Sun news reported. 

Releasing an economic update report, the Maldives Monetary Authority (MMA) projected a moderate growth, 13.5 percent, for the current year. The report said the country is likely to record a contraction of 29.3 percent in its economy in 2020. 

The downfall in the country’s tourism industry is among other factors that caused the contraction in its economy. The decline in the wholesale and retail business, construction, and telecommunications also contributed to the poor economic scenario in the last year.

The archipelago’s tourism-driven economy remained the worst affected among its South Asian neighbors. The sector used to contribute around 70 percent of its total taxes. The Maldives announced the lockdown on 27 March last year which continued for around the next four months. 

The report also said the country’s revenues, excluding grants, registered a decline of 37 percent on annual basis between the period of January and October.