Abstract

This article examines the economic growth in the Republic of Maldives from 1977 to 2017. Our qualitative and quantitative analyses indicate that the evolution of the modern economy in the Maldives started in the post-independence era, specifically in 1978. Further, the analyses show that the trajectory of economic growth in the Maldives is shaped according to each individual government’s distinct policy. The empirical evidence specifies the country’s economy has gone through four different phases of challenges and successes. In general, the first and second waves represent the foundation and expansion of the Maldives’ modern economy. The third wave struggled to maintain the economic status quo or envision new one. The fourth wave sits firmly in the vanguard of the country’s contemporary economic growth. But this does not necessarily mean immunity from challenge. As a result, it is important for the Maldives’ economic advantage to capitalize on the fourth wave’s new economic policies and to continue its enhancement for more growth and success. This way, the country will generate greater economic prosperity, enhance life, and positively address the Maldives’ rapid population growth, socioeconomic issues, and political challenges.