Investment Rating - The report does not explicitly provide an investment rating for the Maldives industry Core Insights - Economic growth in the Maldives remained robust in 2024, with real GDP growth estimated at 5.5 percent, driven primarily by a strong tourism sector [18][34] - Tourist arrivals reached an all-time high of 2.05 million in 2024, marking an increase of 8.9 percent compared to 2023 [18][35] - Headline inflation surged in late 2024, with food inflation averaging 6.6 percent, up from 5.9 percent in 2023 [19][42] - The fiscal deficit widened to MVR 12.7 billion (US$822.4 million or 11.7 percent of GDP) in 2024, driven by rising expenditures [20][52] - The current account deficit (CAD) remained elevated at US$1.4 billion (20.5 percent of GDP) in 2024, with a widening trade deficit [21][68] - Foreign exchange reserves fell to critically low levels, reaching US$371.2 million in September 2024, before recovering to US$832.1 million by February 2025 [22][69] - Public and publicly guaranteed debt rose to US$9.4 billion (134.2 percent of GDP) in 2024, with external debt servicing costs increasing significantly [25][60] Economic Update - Growth remained robust, supported by tourism, with a 7.1 percent increase in the tourism sector in the first three quarters of 2024 [34] - The fiscal deficit continued to increase, with total expenditure rising to 41.3 percent of GDP [20] - The current account deficit remained elevated, financed by foreign direct investment [21][68] Outlook and Risks - Growth is projected to moderate slightly, with real GDP growth expected at 5.7 percent in 2025 [26] - Inflation is anticipated to rise, potentially increasing poverty rates if targeted cash transfers are not implemented [27] - The fiscal deficit is likely to remain elevated, with public debt projected to rise further [28] - Risks to the outlook are significantly on the downside due to global trade uncertainties and high external debt service payments [29]

Core Viewpoint - Guangzhou has launched its first batch of "Green Financial Innovation Practice Demonstration Bases," marking a pioneering effort in the country to support low-carbon development through green finance [3][9]. Group 1: Overview of Demonstration Bases - The first batch includes 10 demonstration bases across various districts such as Huadu, Huangpu, Nansha, Haizhu, Tianhe, Zengcheng, and Conghua [3]. - These bases focus on areas like wastewater treatment, urban waste recycling, ecological restoration, low-carbon operation of urban complexes, rural cultural tourism revitalization, and realization of ecological value [3][5]. Group 2: Financial Tools and Support - The selected bases utilize green finance to provide funding support for project development, promoting green and low-carbon economic growth [5]. - The Fushan Circular Economy Industrial Park, one of the demonstration bases, received significant green finance support, including a 2.8 billion yuan green perpetual corporate bond, with 190 million yuan earmarked for project construction [5][6]. Group 3: Innovative Financial Products - The Guangzhou Water Supply Company issued Guangdong's first green water supply revenue rights ABS, achieving the lowest interest rate in the water supply industry for such products [9]. - The "Green + Digital" approach is emerging as a new direction for high-quality development in green finance, with companies like Green Finance (Guangzhou) Information Technology Co., Ltd. leveraging digital technologies to assist over 200 enterprises in reducing carbon emissions by more than 10 million tons annually [9][11]. Group 4: Market Platforms and Ecosystem Services - The Guangzhou Carbon Emission Rights Trading Center has established the first market-oriented ecological product value realization platform focused on natural resources, facilitating the market trading of ecosystem carbon sink products [11]. - This platform has successfully assisted in the purchase of "judicial carbon sinks," enhancing the mechanism for realizing the value of ecological products and providing alternative restoration methods for civil public interest litigation cases [11].