The Ministry of Finance has stated that the construction industry is expected to grow in the next three years.
The construction industry is one of the fastest-growing sectors in the Maldives. However, the COVID-19 pandemic significantly weakened the sector. The construction industry was expected to grow by 23.3% in 2022 but only grew by 11.8%, the reason being that the sector's growth slowed in the last quarter.
The global trade in building materials and construction work had slowed down by the end of 2022. However, the estimated growth of the construction industry in the Maldives in 2023 has been revised from 8.1% to 9.5% as the global market is now overcoming challenges in the supply chain.
In its Fiscal Strategy Report for 2024-2026, the finance ministry stated that the construction industry is expected to grow by an average of 7.7% year by year for the next three years. The growth is expected due to the development of government infrastructure projects, private sector residential projects as well as tourism establishments.
Additionally, the report revised the Gross Domestic Product (GDP) growth forecast for 2023 from 7.6% to 9.4%. In addition, the ministry previously estimated that economic growth will be 6.3% annually in the medium term but has revised it to 6.8%. The reason for the higher medium-term average economic growth is the expected completion of the Velana International Airport (VIA) development project in 2025 as well as other airport projects, which will boost tourism and other sectors.