Maldives' Interest Burden Doubles in 3 years

Abstract

In 2024, the Maldives is expected to spend 5.1% of its GDP on interest payments for government debt, up from 2.6% in 2021. In 2019, it was only 1.7% which is one-third of the current level.

With increased borrowing to pay interest, public debt has soared to 123.7% by 2023 (up from 77.2% in 2019). The external financing conditions have also worsened with a credit rating downgrade by Fitch in August 2024.