News

Three major sectors of economy show growth in Q1, 2021

Maldives Monetary Authority (MMA) has revealed 3 major sectors of the Maldivian economy saw positive growth in the first quarter of 2021.

The Quarterly Economic Survey published by the MMA stated businesses in all the sectors in the survey, namely tourism, construction, wholesale and retail trade and transport and communication expanded in the first quarter. The report showed that employment levels improved in Q1-2021 in businesses in the tourism; and wholesale and retail trade sectors. However, employment levels continued to decline in the transport and communication; and construction sector.

Reflecting the end of the peak season of the tourism sector, businesses related to tourism turned pessimistic about future activity, as indicated by the significant decline in expected total revenue and resort bookings indices in in the first quarter. On the other hand, businesses in the construction sector indicated increased optimism for the level of activity and orders received in the next quarter. Meanwhile, businesses in the wholesale and retail trade sector became less optimistic about future business activity in the second quarter.

The survey showed there is an expectation of a continued increase in selling prices in businesses in construction and wholesale and retail trade, while prices charged on average in tourism and transport and communication are expected to decline in second quarter.

The Quarterly Business Survey is carried out by the MMA with the aim of obtaining a quick assessment of current business trends and expected future economic activity.