updated by Ramiz

Commenting on the Government’s repudiation of the GMR airport contract, and new economic figures released yesterday, former President Nasheed said:

“The Government’s reckless decision to terminate GMR’s contract will scare off investors. It will have serious ramifications for the economy, at a time when we can ill-afford to see it falter.

“Right across the board we are witnessing positive trends being dangerously reversed. Growth in tourism – the bedrock of our economy – has flat-lined; our GDP, which was 7 per cent last year, is projected to be just 3.4 per cent this year; and our deficit, which we had brought under control at the start of the year, is now ballooning at an alarming rate.

“If this continues, we risk setting back every aspect of our development. It is not those in government but the Maldivian people who stand to lose most from President Waheed’s economic mismanagement.”

NOTES TO EDITORS:

The latest economic and fiscal outlook by the Maldives Finance Ministry (Dhivehi), released on Wednesday, showed that in 2012:
Growth was projected to be 3.4 per cent, revised downwards from 5.5 per cent
Tourism growth was expected to be 0.7 per cent.
The budget deficit was forecast to reach 12.6 per cent of GDP, revised upwards from 9.7 per cent.
The figures represent a significant worsening of the economy, which following the global economic crisis, had rebounded under then President Nasheed.
GDP growth was 7.1 per cent in 2010 and 7 per cent in 2011.
Tourism growth was 15.8 per cent in 2010 and 9.1 per cent in 2011.
The budget deficit was 22 per cent in 2009 and 7.5 per cent in 2011.