Tourism,
Maldives' largest industry, accounts for 20% of GDP and
more than 60% of the Maldives' foreign exchange receipts.
Over 90% of government tax revenue comes from import duties
and tourism-related taxes.
Fishing is a second leading sector.
Agriculture and manufacturing continue to play a minor
role in the economy, constrained by the limited availability
of cultivable land and the shortage of domestic labor.
Other industries consists mainly of garment production,
boat building, and handicrafts, accounts for about 18%
of GDP.
Out of 1900 islands, only 198 are inhabited in Maldives.
The population is scattered throughout the country, and
the greatest concentration is on the capital island, Male.
Development
has been centered upon the tourism industry and its
complementary service sectors, transport, distribution,
real estate, construction, and government. Taxes on
the tourist industry have been plowed into infrastructure
and used to improve technology in the agricultural sector.
GDP
in 2000 totaled $435 million, or about $1,400 per capita.
Maldives has experienced relatively low inflation in
recent years. Real GDP growth averaged about 10% in
the 1980s. It expanded by an exceptional 16.2% in 1990,
declined to 4% in 1993, and has since bounced back to
the 7% to 9% range.
Maldives
has been running a merchandise trade deficit in the
range of $200 to $260 million since 1997. The trade
deficit declined to $233 million in 2000 from $262 million
in 1999.
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