Wholesale and retail trade in Maldives fell by five percent, according to data from central bank, Maldives Monetary Authority (MMA).

The figures show that the sector declined over the past year, while imports also fell by 0.4 percent.

The country imported goods worth USD 3.6 billion during the year, with the lowest import levels recorded in June.

Although the trade sector contracted, it had grown by 4.2 percent the previous year.

Meanwhile, commercial bank credit to businesses increased by 10 percent last year.

Despite the slowdown in trade, the economy grew by 6.3 percent last year, driven largely by tourism, which remains the country’s main economic sector.

World Bank has since revised its growth forecast for the Maldives downward to 0.7 percent from 3.9 percent, citing impact of the Middle East war on tourism performance.

Tourist arrivals have declined amid regional instability linked to the Middle East conflict, with tourism revenues also falling over the past two months.