York, NY 10017
telephone: [1] (212) 599-6195
FAX: [1] (212) 661-6405

Diplomatic representation from the US:
the US does not have an embassy in Maldives; the US Ambassador to
Sri Lanka is accredited to Maldives and makes periodic visits there

Flag description:
red with a large green rectangle in the center bearing a vertical
white crescent; the closed side of the crescent is on the hoist side
of the flag

Economy Maldives

Economy - overview:
Tourism, Maldives' largest industry, accounts for 28% of GDP and
more than 60% of the Maldives' foreign exchange receipts. Over 90%
of government tax revenue comes from import duties and
tourism-related taxes. Fishing is the second leading sector.
Agriculture and manufacturing continue to play a lesser role in the
economy, constrained by the limited availability of cultivable land
and the shortage of domestic labor. Most staple foods must be
imported. Industry, which consists mainly of garment production,
boat building, and handicrafts, accounts for about 7% of GDP. The
Maldivian Government began an economic reform program in 1989
initially by lifting import quotas and opening some exports to the
private sector. Subsequently, it has liberalized regulations to
allow more foreign investment. Real GDP growth averaged over 7.5%
per year for more than a decade. In late December 2004, a major
tsunami left more than 100 dead, 12,000 displaced, and property
damage exceeding $300 million. As a result of the tsunami, the GDP
contracted by about 3.6% in 2005. A rebound in tourism, post-tsunami
reconstruction, and development of new resorts helped boost GDP by
nearly 18 percent in 2006. The trade deficit has expanded sharply as
a result of high oil prices and imports of construction material.
Diversifying beyond tourism and fishing is the major challenge
facing the government. Over the longer term Maldivian authorities
worry about the impact of erosion and possible global warming on
their low-lying country; 80% of the area is one meter or less above
sea level.

GDP (purchasing power parity):
$1.25 billion (2002 est.)

GDP (official exchange rate):
$817 million (2005 est.)

GDP - real growth rate:
-3.6% (2005 est.)

GDP - per capita (PPP):
$3,900 (2002 est.)

GDP - composition by sector:
agriculture: 20%
industry: 18%
services: 62% (2000 est.)

Labor force:
88,000 (2000)

Labor force - b