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Construction sector commercial bank credit fell by 6 percent

Mohamed Rehan
20 October 2022, MVT 19:38
Major social housing projects in Hulhumale' Phase II contributed towards the increment in construction activity in Q2-2022--
Mohamed Rehan
20 October 2022, MVT 19:38

Activities in the construction sector continued to expand in the second quarter of 2022.

Maldives Monetary Authority (MMA) reports the sector expanded due to increased construction activity, despite supply shortages of "certain construction materials", which drove prices up.

Import of construction-related items rose significantly, increasing by 58 percent year-on-year whereas commercial bank credit to the construction fell by 6 percent at the end of Q2-2022. The decline in commercial bank credit is mainly due to the decline in credit extended for new resort development, followed by renovation of resorts and construction of residential or housing projects.

However, credit extended for construction of property development projects observed increments along with real estate of commercial buildings and residential or housing projects.

Volume of construction activity index increased by 1 point to register 47 points in Q2-2022, while 49 percent of businesses reported an increase in the volume of construction activity relative to Q1-2021. On the other hand, the other 49 percent reported no change in business activities while 2 percent reported a decline in business activities.

Volume of construction-related orders received index rose by 23 points to 46 during the review quarter.

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