Economic well-being of people in a country is most commonly measured by its' GDP. Not everyone would agree that increase in the real GDP would increase the well-being. Amount of leisure time, non market activities of people, environmental quality, quality of life, poverty and economic inequality has to be be considered in addition to the real GDP to comment on the economic well-being. However, normally the GDP performance is positively correlated with above mentioned factors. Therefore key industries contributing to the GDP has to monitored closely in order understand the economic welfare of a country.
During the past decade, the Maldivian real GDP has almost doubled. The key industries which contributed most are tourism, transport and communication, government administration, manufacturing and fisheries industry.
Tourism
Tourism has been the most important sector in the Maldivian economy and it contributes around one third of the country's GDP. The tourism sector has performed quite well with moderately high growth rates during late 90s. It also has witnessed two major setbacks during the past decade - the September 11 attacks and the Tsunami. In 2001 there was no growth while in 2005 tourism sector's contribution fell significantly. Government officials project that the tourism industry would fully recover from the latter blow and the industry would be back on track. In addition, tourism is the most crucial source of government revenue and foreign exchange earnings.
Transport and Communication
National income from transport and communication is huge - projected to be 16% of the real GDP in 2006 and its share has been increasing through out the past decade. Varying amount of growth rates has been witnessed by this sector in the past decade with sudden increases and decreases.
Government Administration
Government contribution to GDP has increased from around 10% in late 90s to more than 15% in 2005. It is also projected to increase in 2006. An increase in aggregate government expenditure/income might be due to the growth of business sector and increase in the demand for public or merit goods during the past decade.
Manufacturing
Surprisingly, manufacturing sector of the Maldives has contributed around 6-9% to the real GDP during the past decade. Main products of the manufacturing sector are various fish products. For the most part of last decade this sector grew significantly, but slowed down since 2002 and is expected to pickup again in the current year.
Fisheries
Another surprise in the Maldivian economy that our fisheries sector not being high on the GDP contribution list. The so called blood vein of the Maldivian economy constitutes only 6-7% to the real GDP. The real GDP generated by fishery has witnessed a rough ride with significant peaks and slumps. But since 2003 fisheries sector is performing well.
These are the most important sectors in the Maldivian economy. Other industries which are booming include construction, wholesale and retail trade, real estate and financial services.
References
Ministry of Planning and Development (2005), 25 Years of Statistics Maldives, http://planning.gov.mv/publications/25years%20stats/default.htm
Maldives Monetary Authority (2006), Mothly Statistics Nov 2006, http://www.mma.gov.mv/Monthly%20Statistics/nov06.pdf
During the past decade, the Maldivian real GDP has almost doubled. The key industries which contributed most are tourism, transport and communication, government administration, manufacturing and fisheries industry.
Tourism
Tourism has been the most important sector in the Maldivian economy and it contributes around one third of the country's GDP. The tourism sector has performed quite well with moderately high growth rates during late 90s. It also has witnessed two major setbacks during the past decade - the September 11 attacks and the Tsunami. In 2001 there was no growth while in 2005 tourism sector's contribution fell significantly. Government officials project that the tourism industry would fully recover from the latter blow and the industry would be back on track. In addition, tourism is the most crucial source of government revenue and foreign exchange earnings.
Transport and Communication
National income from transport and communication is huge - projected to be 16% of the real GDP in 2006 and its share has been increasing through out the past decade. Varying amount of growth rates has been witnessed by this sector in the past decade with sudden increases and decreases.
Government Administration
Government contribution to GDP has increased from around 10% in late 90s to more than 15% in 2005. It is also projected to increase in 2006. An increase in aggregate government expenditure/income might be due to the growth of business sector and increase in the demand for public or merit goods during the past decade.
Manufacturing
Surprisingly, manufacturing sector of the Maldives has contributed around 6-9% to the real GDP during the past decade. Main products of the manufacturing sector are various fish products. For the most part of last decade this sector grew significantly, but slowed down since 2002 and is expected to pickup again in the current year.
Fisheries
Another surprise in the Maldivian economy that our fisheries sector not being high on the GDP contribution list. The so called blood vein of the Maldivian economy constitutes only 6-7% to the real GDP. The real GDP generated by fishery has witnessed a rough ride with significant peaks and slumps. But since 2003 fisheries sector is performing well.
These are the most important sectors in the Maldivian economy. Other industries which are booming include construction, wholesale and retail trade, real estate and financial services.
References
Ministry of Planning and Development (2005), 25 Years of Statistics Maldives, http://planning.gov.mv/publications/25years%20stats/default.htm
Maldives Monetary Authority (2006), Mothly Statistics Nov 2006, http://www.mma.gov.mv/Monthly%20Statistics/nov06.pdf
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