Maldives Monetary Authority (MMA) has revealed the economic decline of the Maldives had eased in the fourth quarter of 2020, due to the lifting of lockdown measures.
As per the Quarterly Economic Bulletin published by MMA, economic activity levels picked up during the last quarter of 2020, primarily due to the commencement of the peak season of tourism and the increased activity of related sectors such transportation, communication, wholesale and retail trade. The report said the lifting of lockdown measures in the Greater Male’ Region also contributed to the improvement in economic activity. However, the report said output recovery continued to be hampered due to the resurgence of the pandemic across major tourism source markets and the reintroduction of stringent containment measures to curb the spread.
With regard to the developments in domestic prices, the report said the annual rate of CPI inflation remained unchanged from the previous quarter and in negative territory, at minus 1.1%. The report said the downward inflationary pressure stemmed predominantly from the continued pandemic-related reductions in the prices of information and communication services and housing rent, as well as a decline in prices of certain vegetables.
Furthermore, the report said total state revenue, excluding grants, registered a significant annual decline during the quarter due to the drop in both tax and non-tax revenues. Meanwhile, total expenditure excluding debt amortization also observed a decline during the quarter, due to decreases in both capital and recurrent expenditure.