News

Activities of construction sector record decline of 61%

Maldives Monetary Authority (MMA) has stated activities of the construction sector recorded a decline of 61% in the second quarter of 2020.

According to the Quarterly Business Survey publicised by the MMA, the second quarter saw a decline of 76% compared to the first quarter. Businesses in the tourism, construction, wholesale and retail trade reported an unprecedented decline in activity due to the COVID-19 pandemic and the lockdown measures imposed to contain its spread.

The statistics showed the activities of the construction sector were at 15% in the first quarter and the figure declined to 61% in the second quarter, which is the lowest recording till date. Overlooking at the whole sector, the businesses in the construction sector registered a decline of 66% compared to the first sector. The statistics showed the new projects in the second quarter declined 16% in the second quarter.

Meanwhile, employment index also fell 46% in the second quarter while the wages and other labour costs index remained close to zero. However, most businesses expect construction activity to improve in the third quarter.

The Quarterly Business Survey is carried out by the MMA with the aim of obtaining a quick assessment of current business trends and expected future economic activity.