Maldives seeks international aid to stabilize economy

Maldives Finance Minister Hassan Zareer has requested assistance from the World Bank and other international partners to strengthen the nation's economy and reserves. The country is facing significant economic challenges due to rising fuel prices, driven by conflicts in the Middle East, and a decline in tourism revenue.

According to the Minister, government spending on energy subsidies has tripled this year, contributing to a projected budget deficit increase from 7.1 percent to 9 percent. To address these issues, the government is working on fiscal reforms to reduce spending.

To revitalize the tourism sector, the government plans to lease additional aircraft for the national airline and is exploring ways to increase flights from Australia, the country's eighth-largest market. Discussions are also underway with seven other foreign airlines to boost travel to the Maldives. Economic growth for 2026 is currently projected at only one percent.