IMF \\\'surprised\\\' by Maldives economic resilience

COLOMBO, Feb 18 (Xinhua): The International Monetary Fund (IMF) is "surprised" by the resilience of the Maldives economy but has cautioned over the increasing deficit, local media reported here on Tuesday.

IMF Representative for Sri Lanka and Maldives Dr. Koshi Mathai, told reporters reserves at the Maldives Monetary Authority (MMA) have been low for many years. He also said that with the increasing expenditure of the government over revenue has led to a "precarious" fiscal deficit and remained so for a long period of time.

Dr. Mathai said that IMF had expected the Maldivian economy to run into some major problems due to these issues.

"We expected the economy to run into some problems, but we are happily surprised by the resilience Maldivian economy has shown," said Mathai.

Noting that the Maldivian economy is different from other countries, he said that IMF is very interested to know how the Maldivian economy has remained resilient. Mathai said that though the Foreign Currency Reserve is at an alarming stage, "wide ranges of imported goods are on the shelves of the shops."

He further stated that though the economy is in such a state, "people have motor scooters and cars and smart phones."