Maldives Monetary Authority (MMA) reports merchandize trade deficit widened from USD 669.3 million in Q1-2023 to USD 768.5 million in Q1-2024; owing to higher imports compared to exports.
Compared to Q4-2023, the merchandize trade deficit in the review quarter saw a drop of only 6%.
According to the Maldives central bank’s Quarterly Economic Bulletin, total merchandize exports – comprising of domestic exports and re-exports – saw an annual drop of 5% in the first quarter this year, registering a total of USD 131.3 million.
This drop is due to a steep decline in domestic exports; which has been on the downward slope for the last two consecutive quarters as well.
Domestic exports, which consists mainly of fish and fish products, plunged 41% in the first quarter of 2024; registering USD 31.5 million. This decline is owed to a staggering drop in the export earnings from frozen skipjack tuna, which observed a 64% plummet.
Furthermore, the decline in export earnings reflected both the 57% decline in volume of such exports, and 21% plummet in skipjack tuna prices in the Bangkok frozen market during the review quarter.
Frozen skipjack tuna in Bangkok market dropped from USD 1.8 per kilogram in Q1-2023 to USD 1.4 per kilogram in the review quarter.
Declines were also seen in the export earnings from fresh or chilled yellowfin tuna for the third consecutive quarter, during which export earnings from this commodity dropped by 57% – registering USD 3.3 million, with the volume of such exports dropping by 55%.
Merchandize re-exports rose by 18%, registering a total of USD 99.8 million – mainly due to the growth in jet fuel re-export.
Total merchandize imports saw a 12% growth in Q1-2024; registering a total of USD 899.8 million. Major import categories saw modest growths, but was partly offset by a considerable decline in import expenditure on construction-related items; which slip to 9% in the review quarter.
The largest increase in the import expenditure was observed on petroleum products, which bump up by 25% – registering USD 41.9 million. The spike is due to a surge in diesel imports, which recorded a substantial 27% increment, USD 34.8 million in Q1-2024.
Food items saw a 14% growth, registering USD 23.9 million. Machinery and mechanical appliances and parts imports saw a 40% jump, USD 23.0 million. Moreover, import expenditure on electrical and electronic machinery and equipment registered a 43% jump, registering USD 19.0 million during the review quarter.