The number of construction related imports decreases in the first quarter of this year.
The performance of the construction sector showed mixed developments during quarter one, as the key indicators of the sector, namely construction sector-related imports and commercial bank credit to the sector, moved in opposite directions, according to the Quarterly Economic Bulletin of Maldives Monetary Authority (MMA). In this regard, the import expenditure on construction sector-related items recorded a decline while bank credit to the construction sector showed an increase.
Statistics of MMA show that construction sector-related imports, which includes wood, metal, cement and aggregates and other construction-related items, declined markedly by 21 percent when compared with the same quarter last year. MMA said it is noteworthy that construction sector-related imports have been on a declining trend since the last quarter of 2018 which can mostly be attributed to the winding down of the major public infrastructure projects toward the last quarter of 2018.
Furthermore, MMA noted while a large portion of the financing for resort development projects and social housing projects are sourced from abroad, commercial bank credit to the construction sector is considered an important indicator to gauge the development of the sector.
Meanwhile, bank credit to construction witnessed a 17 percent growth predominantly owing to the increase in loans for construction of residential housing, new resort development, as well as renovation of resorts in the first quarter of this year, according to statistics.
However, loans for guesthouse development continued to decline in annual terms during the quarter.