Economic 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 the economy recover quickly. the trade deficit has expanded sharply as a result of high oil prices and imports of construction material. diversifying beyond tourism and fishing and increasing employment are the major challenges 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 1 meter or less above sea level.
Environmental Issues
Depletion of freshwater aquifers threatens water supplies; global warming and sea level rise; coral reef bleaching
Government Type
Republic
Population
385,925 (july 2008 est.)
Location
Southern asia, group of atolls in the indian ocean, south-southwest of india
Area
Total: 300 sq km
land: 300 sq km
water: 0 sq km
About 1.7 times the size of washington, dc
Country Aliases
Conventional long form: republic of maldives
conventional short form: maldives
local long form: dhivehi raajjeyge jumhooriyyaa
local short form: dhivehi raajje
Capital
Name: male
geographic coordinates: 4 10 n, 73 30 e
time difference: utc+5 (10 hours ahead of washington, dc during standard time)
Military Service
18 years of age for voluntary military service; no conscription (2008)
International Disputes
None
Sources: Central Intelligence Agency (CIA)
