MMA's Quarterly Business Survey Highlights (January - March 2025): Shows Changes in Economic Sectors

The Maldives Monetary Authority (MMA), the central bank of Maldives, has released the results of the 'Quarterly Business Survey' for the first quarter of 2025 (January - March). This survey is conducted four times a year. The purpose of this survey is to quickly identify short-term economic changes and potential future changes to assist in formulating national policies.

Survey Details:

This survey, conducted since 2013, is a tool used to identify changes in important metrics such as business revenue, number of employees, salaries, financial condition, prices of goods and services sold, and prices of goods purchased for business operations. It is used to understand the perspectives of large businesses operating in four important sectors of the economy: tourism, construction, transport and communication services, and wholesale and retail trade.

This survey for the first quarter of 2025 was conducted from April 9 to April 23, 2025. Out of 160 large companies invited to participate, 109 companies or 68 percent participated in the survey. More details about this survey are included in the report published on the MMA website.

Key Findings (January - March 2025):

• Business Activities:

• Wholesale and Retail: Business volume increased compared to the fourth quarter of 2024.

• Tourism and Transport & Communication: The rate of business growth has slowed.

• Construction: Business volume has decreased.

• Number of Employees:

• Tourism and Wholesale & Retail: The number of employees has increased.

• Construction: The number of employees has decreased.

• Transport & Communication: The rate of increase in the number of employees has slowed.

• Price Changes:

• Input Prices:

• Tourism and Construction: The rate of price increase has slowed.

• Transport & Communication: Prices have increased.

• Wholesale and Retail: Prices have decreased.

• Output Prices:

• Tourism: The rate of price increase has slowed.

• Construction: The rate of price increase has risen.

• Wholesale & Retail and Transport & Communication: Prices have decreased.

• Financial Condition:

• Tourism and Wholesale & Retail: Financial condition has improved compared to the fourth quarter of 2024.

• Construction: The rate of financial deterioration is showing signs of improvement.

• Transport & Communication: Financial condition has worsened.

• Access to Credit:

• Tourism: Access to credit has become easier.

• Construction: Access to credit has become more difficult.

• Transport & Communication, Wholesale & Retail: Access to credit has become more difficult.

Outlook for the Next Quarter (April - June 2025):

• Tourism: Business is expected to decline as the Maldives' tourism 'peak season' is expected to end.

• Transport & Communication: Although business growth is predicted, the rate of growth is expected to slow down.

• Construction: While the level of business activities is maintained, demand is noted to weaken.

• Wholesale and Retail: Although sales weakened, demand is expected to increase.

• Financial Condition: Except for the tourism sector, businesses in all sectors included in the survey are expected to see an improvement in their financial condition.

• Access to Credit: Except for the construction sector, businesses in all sectors are expected to face increased difficulty in accessing credit. The construction sector anticipates no change in this regard.

The MMA notes that such surveys are conducted to identify economic momentum and provide information necessary for appropriately determining policies needed to strengthen the national economy.