The Maldives Monetary Authority (MMA) has reported an expansion in activity in all sectors from 25th December 2022 to 11th January 2023.
According to the central bank’s “Quarterly Business Survey”, businesses in all the economic sectors saw notable improvements. However, construction and transport and communication sectors reported moderation.
Employment levels rose for businesses in all the surveyed sectors in Q4-2022, MMA reported. Tourism sector registered the most notable increase for the second consecutive quarter.
With the continuation of the tourism peak season in Q1-2023, the respondents from tourism sector remained optimistic about the future activity. Despite a positive outlook, businesses in the sector expect the activity to moderate going forward.
Similarly, businesses in the wholesale and retail trade, construction, transport and communication sectors expect their activity to improve during Q1-2023.
Price developments indicated heightened upward pressures in Q4-2022. The indices for input and selling prices remained elevated for businesses in all sectors; wholesale and retail trade sector observed the most notable increase in input prices and tourism sector exhibited the most significant rise in selling prices.
The financial situation of the businesses also improved except for construction sector in Q4-2022. Going forward, businesses in all the sectors, including construction, expect their financial situation to improve during Q1-2023.
In general, credit conditions remained tight for all the sectors during the final quarter last year while businesses in the construction and wholesale and retail trade sectors expect further constraints during the first quarter this year.