News Desk
Maldives closed the fiscal year of 2023 with a total debt of MVR 124 billion, as revealed by data released by the Ministry of Finance. The figures encompass both domestic and external debts, contributing to a debt-to-GDP ratio of 115.9 percent. This represents a notable increase from the previous year’s debt of MVR 108.4 billion.
Debt Breakdown:
The debt composition for the fourth quarter of 2023 shows MVR 73 billion in domestic debt and MVR 51 billion in external debt. The division highlights the nation’s reliance on both domestic and international financial sources to meet its financial obligations.
Yearly Debt Comparison:
Comparing the data from the end of 2023 with the preceding year, Maldives experienced a rise in total debt. In 2022, the country’s debt stood at MVR 108.4 billion, indicating an increase of MVR 15.6 billion or approximately 14.4% in the span of one year.
Debt Fluctuations throughout 2023:
Examining the debt figures throughout 2023 reveals a gradual increase in each quarter:
- Q1: MVR 113.6 billion
- Q2: MVR 118.6 billion
- Q3: MVR 121 billion
- Q4: MVR 124 billion
This quarterly breakdown illustrates a consistent upward trajectory, signifying an ongoing challenge for Maldives in managing its financial liabilities.
Debt-to-GDP Ratio:
The debt-to-GDP ratio is a crucial metric indicating a country’s ability to manage and service its debt. With a ratio of 115.9 percent, Maldives faces a significant challenge in maintaining a sustainable balance between its debt and economic output. A nuanced approach to debt management becomes crucial for ensuring long-term fiscal stability.
