Will the high tide lift all the boats? By Ibrahim Athif Shakoor How the growth of a particular sector in the Maldivian economy affects the economy as a whole. The larger essay will compare and contrast 3 essential industries of the Maldivian economy; Travel, Fish and Build, to understand these feedback loops and their beneficial effects.

“The high tide lifts all the ships” is a popular quote by John F. Kennedy and is often used, almost as a fact, to indicate an increase in economic activity. will benefit all sectors of the economy and to all the peoples of this country. .

However, as much as there are doubts about the origin of the phrase, there is also considerable research indicating that increased GDP growth is not evenly spread across all ethnicities or even carries benefits all sectors of the economy. This essay will attempt to better understand the perception of GDP growth in these industries. It will also test the beneficial feedback loop in the broader economy.

According to published statistics, the national economy grew by 7.33% in 2014, 2.25% in 2015 and 7.3% in 2016 and 6.9% in 2017. Budget 2019 The Minister of Finance presented a growth forecast of 7.6% in 2018. . As you would expect, a closer analysis of the economy shows that different sectors of the economy grew at different rates during this period.

While the national economy grew on average 5.25% during the study period; 2014-2016, (due to the lack of detailed industry analysis for 2018), the primary sector grew by only 0.22% and the tertiary sector by 4.53% during this period. It is the Secondary Sector with a huge growth of 15.91%, providing most of the fuel to boost the national economy in the three years 2014-2016. For ease of understanding, the larger article will take a detailed look at the different industries that make up the Maldivian economy.

Since it was clear that the secondary sector accounted for most of the growth over the period studied, a closer examination of the secondary sector reveals that although the sector has grown 15.91% during this period, but the construction industry had a huge growth rate of 24.17% during the period and actually increased 28.54% in 2014 and increased by 26.81% in 2015, contributing largely to the growth of the region. secondary.

Therefore, it is the remarkable growth of the construction industry at 24.17%, leading to the growth of nearly 16% of the secondary industry and the growth of the national economy as a result. 5.25% during this period.

As mentioned at the beginning, it is almost true that the rising tide causes all the boats to drift. This growth of the economy will benefit all industries and everyone. However, as usual with all such circumstances, there are still many conditions and warnings to be appreciated.

The Maldives Economy Basics tells us that, like in other economies, the beneficial effects of growth in a particular industry are not evenly distributed across stakeholders in branch. Some industries, by their structure, are better suited to spreading the benefits of growth to a larger number of national players. Almost by definition, some are not. High tide does not lift all boats equally. Detailed analysis to follow in the following section