Maldives: Selected Economic Indicators, 2003-07
								Est.		Proj.
		2003		2004		2005		2006		2007
		(Annual percentage change)
Growth and prices
Real GDP		8.5		9.5		-4.5		19.1		5.5
Inflation (period average)		-2.8		6.3		3.3		3.7		7.0
		(Percent of GDP)
Central government
Revenue and grants		34.8		34.2		48.0		62.9		55.8
Of which: Grants		1.4		0.7		8.6		18.1		10.7
Expenditure and net lending		38.2		36.0		58.9		70.2		79.6
Of which: Domestic spending		34.0		33.2		46.8		47.4		54.6
Overall balance		-3.4		-1.9		-10.9		-7.3		-23.9
Overall balance, excluding grants		-4.8		-2.6		-19.5		-25.3		-34.6
Financing
Domestic		-1.3		-2.2		8.4		1.9		9.0
Foreign		4.7		4.1		2.4		5.4		14.9
		(In millions of U.S. dollars)
Balance of payments
Exports, including re-exports		152.0		181.0		161.6		225.2		237.5
Imports		-414.3		-567.3		-655.5		-815.3		-921.8
Nonfactor services (net)		311.1		352.4		118.8		240.0		292.9
Current account balance		-31.8		-128.4		-268.8		-369.2		-414.8
(In percent of GDP)		-4.6		-16.5		-35.8		-40.7		-40.5
Official capital (net)		29.9		25.0		18.6		38.4		152.3
Private capital (net)		70.3		140.1		145.8		237.5		163.3
Errors and omissions (net)		5.3		16.2		-11.3		27.2		0.0
Overall balance		26.5		44.2		-17.3		45.1		-24.2
Gross official reserves (year-end)		160.3		204.4		187.1		232.2		208.0
(In months of imports of GNFS) 1/		2.7		2.9		2.1		2.4		2.1
External Debt		289.5		331.8		429.1		592.3		819.6
(In percent of GDP)		41.8		42.7		57.2		65.3		80.1
Public External Debt		272.9		311.6		309.9		361.8		514.1
(In percent of GDP)		39.4		40.1		44.0		40.7		50.9
Debt service		22.0		32.3		43.0		53.7		80.3
(In percent of domestic exports of GNFS) 2/		4.0		5.1		10.1		8.8		11.9
Exchange rate
Rufiyaa per U.S. dollar (period average)		12.8		12.8		12.8		12.8		12.8
Memorandum item:
Nominal GDP (in millions of rufiyaa)		8,863.2		9,939.2		9,607.7		11,608.3		13,104.1

"Directors expressed concern that the 2007 budget accommodates a substantial increase in domestically financed expenditures—mostly unrelated to post-tsunami rehabilitation. Moreover, a number of new revenue measures depend on an overly ambitious resort development schedule, and the expected revenues may fail to materialize. Directors therefore encouraged the authorities to prioritize expenditures and bring them in line with realistic revenue estimates, so as to achieve the stated objective of zero domestic financing of the budget. They recommended developing a medium-term expenditure framework to help accommodate the desired level of development spending within the available resource envelope."

IMF REPORT