Construction sector activities continued to expand during Q3-2022. This followed a 32.5% growth in the gross value added of the sector during Q2-2022. This was still 20.7% lower than the pre-pandemic levels of Q2-2019.
Maldives Monetary Authority (MMA) reports the construction industry growth reflected the ease in labor shortages and supply chain disruptions. Import of construction-related items rose, registering an annual increment of 71%.
On the other hand, commercial bank credit to the construction sector a 6% drop at the end of the review quarter. This decline was largely owed to the slip in the credit extended for the renovation of resorts and development of new resorts.
Credit lent for construction of residential or housing projects, property development projects and construction of guest houses saw a drop. However, credit extended to real estate of commercial buildings and residential or housing projects increased.
Furthermore, Maldives central bank reported that the volume of construction industry activity index rose by 7 points, registering 54 points in Q3-2022.