Maldives Annual Review 2025

 

1. In 2025, the Maldives approved a record National Budget of MVR 64.2 billion, while total expenditure stood at MVR 49.2 billion.

2. Revenue and grants for the Maldives in 2026 were projected at MVR 40.4 billion.

3. The Maldives Monetary Authority estimated real GDP growth at around 5.4 percent in 2025, improving from 3.5 percent growth in 2024.

4. The IMF Article IV mission in February 2025 warned that Maldives public debt had crossed 100 percent of GDP and stressed fiscal consolidation.

5. Economic recovery in the Maldives during 2025 was mainly driven by tourism revival and infrastructure expansion.

6. President Mohamed Muizzu’s administration in 2025 emphasised national sovereignty and introduced amendments to immigration policy.

7. On 16 September 2025, the People’s Majlis passed the Maldives Media and Broadcasting Bill, triggering protests over concerns regarding freedom of expression.

8. In 2025, Parliament dismissed Supreme Court judges Dr Azmiralda Zahir and Mahaz Ali Zahir, raising concerns about judicial independence.

9. The Maldives submitted its Third Nationally Determined Contribution (NDC) to the UNFCCC in 2025.

10. Under its Third NDC, the Maldives pledged to reduce CO₂ emissions by 1.52 million tons by 2035, subject to international assistance.

11. Energy, transport, and waste were identified as priority sectors in the Maldives’ revised climate commitments for 2025.

12. During Prime Minister Narendra Modi’s July 2025 visit, India extended a USD 565 million Line of Credit to the Maldives.

13. India and the Maldives initiated formal negotiations for a Free Trade Agreement in 2025 as bilateral trade approached USD 500 million.

14. Under Phase III of the High Impact Community Development Project, 13 MoUs worth MVR 100 million were signed in May 2025 for ferry connectivity and social infrastructure.

15. The second meeting of the High-Level Core Group held in New Delhi in May 2025 operationalised the Comprehensive Economic and Maritime Security Partnership between India and the Maldives.

Must Know Terms :

 

1.MuizzuGovernment

 

MuizzuGovernment refers to the administration led by President Mohamed Muizzu in the Maldives during 2025. The government adopted an assertive governance style focused on sovereignty, immigration reforms, and institutional restructuring. It also deepened ties with India through economic and security cooperation while balancing strategic autonomy. The administration faced criticism over media legislation, judicial independence concerns, and growing centralisation of executive authority.

2.ThirdNDC

 

ThirdNDC refers to the Maldives’ Third Nationally Determined Contribution submitted to the UNFCCC in 2025. Under this commitment, the Maldives pledged to reduce carbon dioxide emissions by 1.52 million tons by 2035, subject to international support. The revised climate strategy prioritised energy, transport, and waste sectors. Climate adaptation and resilience remained central because of rising sea levels and extreme weather threats facing the island nation.

3.HLCG

HLCG stands for the High-Level Core Group mechanism between India and the Maldives. In May 2025, its second meeting in New Delhi operationalised the Comprehensive Economic and Maritime Security Partnership. The framework focused on maritime security, transport connectivity, fisheries cooperation, and capacity-building initiatives. It became an important platform for strengthening bilateral strategic engagement while respecting the Maldives’ emphasis on sovereignty and balanced regional partnerships.

4.MaldivesMediaBill

MaldivesMediaBill refers to the Maldives Media and Broadcasting Bill passed by the People’s Majlis on 16 September 2025. The legislation triggered protests from journalists and opposition parties, who argued that it threatened freedom of expression and independent media functioning. The bill became a major issue in domestic politics under President Muizzu’s administration and reflected wider debates over governance, institutional reform, and democratic freedoms in the Maldives.

5.IndiaMaldivesFTA

 

IndiaMaldivesFTA refers to the formal Free Trade Agreement negotiations initiated between India and the Maldives in 2025. Bilateral trade between the two countries was approaching USD 500 million during this period. The proposed agreement aimed to strengthen economic integration, investment cooperation, renewable energy collaboration, and fisheries partnerships. The negotiations also reflected India’s broader effort to maintain strategic influence and economic engagement in the Indian Ocean region.

6.HICDP

HICDP stands for the High Impact Community Development Project supported by India in the Maldives. Under Phase III in 2025, thirteen MoUs worth MVR 100 million were signed for ferry connectivity and social infrastructure projects. The initiative represented India’s soft-power and development partnership approach. It focused on improving local infrastructure, community welfare, and grassroots connectivity while strengthening India–Maldives people-to-people relations.

MCQ :

1. In 2025, the Maldives approved a National Budget of:

A. MVR 54.2 billion
B. MVR 64.2 billion
C. MVR 74.2 billion
D. MVR 84.2 billion

2. Total expenditure under the Maldives budget in 2025 stood at:

A. MVR 39.2 billion
B. MVR 44.2 billion
C. MVR 49.2 billion
D. MVR 59.2 billion

3. Revenue and grants projected for the Maldives in 2026 were:

A. MVR 30.4 billion
B. MVR 35.4 billion
C. MVR 40.4 billion
D. MVR 45.4 billion

4. The Maldives Monetary Authority estimated real GDP growth for 2025 at around:

A. 4.4 percent
B. 5.4 percent
C. 6.4 percent
D. 7.4 percent

5. According to the IMF Article IV mission, Maldives public debt in 2025 had crossed:

A. 80 percent of GDP
B. 90 percent of GDP
C. 100 percent of GDP
D. 110 percent of GDP

6. Maldives’ economic recovery in 2025 was mainly driven by:

A. Defence manufacturing and mining
B. Tourism revival and infrastructure expansion
C. Agricultural exports and fisheries decline
D. Cryptocurrency investment and banking reforms

7. President Mohamed Muizzu’s administration mainly emphasised:

A. Military alignment and privatisation
B. Sovereignty and immigration reforms
C. Federal restructuring and currency reforms
D. Export controls and tourism restrictions

8. The Maldives Media and Broadcasting Bill was passed on:

A. 16 January 2025
B. 16 March 2025
C. 16 July 2025
D. 16 September 2025

9. The Maldives Media and Broadcasting Bill triggered protests mainly over concerns related to:

A. Taxation policy
B. Religious restrictions
C. Freedom of expression
D. Tourism licensing

10. Which two Supreme Court judges were dismissed by Parliament in 2025?

A. Ibrahim Didi and Ahmed Naseem
B. Azmiralda Zahir and Mahaz Ali Zahir
C. Mohamed Latheef and Ali Rasheed
D. Hassan Saeed and Mariyam Waheed

11. In 2025, the Maldives submitted its Third Nationally Determined Contribution to:

A. UNESCO
B. WTO
C. UNFCCC
D. IAEA

12. Under its Third NDC, the Maldives pledged to reduce CO₂ emissions by:

A. 1.02 million tons by 2030
B. 1.52 million tons by 2035
C. 2.52 million tons by 2040
D. 3.52 million tons by 2050

13. Which sectors were identified as priority sectors in Maldives’ revised climate commitments?

A. Energy, transport, and waste
B. Defence, tourism, and mining
C. Fisheries, aviation, and textiles
D. Banking, agriculture, and steel

14. During Prime Minister Narendra Modi’s July 2025 visit, India extended what amount as a Line of Credit to the Maldives?

A. USD 365 million
B. USD 465 million
C. USD 565 million
D. USD 665 million

15. HICDP in the Maldives stands for:

A. High Investment Connectivity Development Programme
B. High Impact Community Development Project
C. Humanitarian Infrastructure and Coastal Development Programme
D. High Integration Commerce Development Plan