The Maldives’ government debt is projected to rise to MVR 150 billion next year, according to recent data from the Ministry of Finance. By the end of this year, total debt is expected to reach MVR 139 billion, driven by planned deficit budgets and debt refinancing needs.
The 2024 debt estimate includes government-guaranteed loans, bringing overall debt to approximately 124% of the nation’s GDP. Direct government debt alone is expected to reach MVR 138 billion and will likely remain above 95% of GDP through 2026 and 2027.
The Finance Ministry highlighted the need for reforms to control government spending and stabilize debt levels. Without significant reductions in debt relative to GDP, the government may face challenges in funding development projects and essential services.
