Economy

The Republic of Maldives is a chain of 1,190 coral islands spanning an area of 90,000 sq. km in the Indian Ocean. The islands occur in twenty six natural atolls, but for easy administration the country is divided into 20 "atolls".

According to the results of the Population and Housing Census, March 2000, the population of the country is 270,101 and is growing at the rate of 3.4%. There are 220 inhabited islands of which twenty-five have more than one thousand inhabitants. The second most populous of the inhabited island is Male', the capital and the centre of commerce. The population of Male', which is growing at a faster rate than the rest of the country, stands at 75,000 (2000 census). The country's labour force (total in 1990 is 51,218 - 15 to 59 years of age) constitutes over 50.06% of the working age (15 - 59 years) population.

The GDP estimated at MRf 1190.2 million in 1993 (at 1985 constant prices) amounted to a per capita GDP of MRf 4,993 (about US$703.4). GDP growth rate (1992 - 1993) is 6.2%

INDUSTRY

Industry in The Maldives consists of a traditional and a modern sector.

The traditional sector consists of boat building, mat-weaving, rope-making, black-smithing, handicraft and other cottage industries. This sector employs a considerable number of women and accounts for about a quarter of the work force. Its linkage with other sectors of the economy such as tourism, transport and construction has further strengthened this sector. While traditional industries continue to flourish, there are also a number of new industries coming up.

The main activities in the modern sector include fish canning, manufacturing of garments, production of PVC pipes, construction of fibre glass boats, production of cleaning fluids, and bottling of aerated water. Other enterprises such as boat yards, transport services, electrical and mechanical workshops, carpentries and brick-making units are also significant.

The size of the domestic market, shortage of skilled and semi-skilled manpower, non-availability of raw materials and difficulties of transportation characterise the constraints of industrial development in the country. It is recognised that the development of the industrial sector is important to meet the growing demands of the economy. Therefore, foreign investment is highly encouraged for initiating mutually beneficial investment projects. The industrial sector accounts for about 5.8% of the GDP.

It is expected that with the development of transport, communication and other infrastructural facilities, the economic base of the country will be further broadened.