The Maldives Construction sector continued to expand in the third quarter of 2022, following a 32.5 percent growth in the gross value added to the sector in the previous quarter. However, the gross value added to the sector was still 20.7 percent lower than the pre-pandemic numbers in 2019.
Maldives Monetary Authority (MMA), on their Quarterly Economic Bulletin, reported that the construction industry growth reflected the ease in labour shortages and supply chain disruptions. Import of construction materials rose significantly with an annual increase of 71 percent.
The commercial bank credit to the construction sector saw a 6 percent decline by the end of the final quarter of this year. The bank's credit decline was largely due to the decrease in the credit extended for resort renovations and development of new resorts.
Credit lent for construction of residential or housing projects, property development projects and construction of guest houses also saw a decline, while credit extended to real estate of commercial buildings and residential or housing projects increased.
MMA reports the volume of construction activity index rose by 7 points, to register 54 in the third quarter of 2022 with 55 percent of businesses reporting growth in the volume of construction activity. The remaining 44 percent of businesses reported no changes while just 1 percent reported a decline in construction activity volume.
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