The Maldives Bureau of Statistics has released the Producer Price Index (PPI) for the fourth quarter of 2024, revealing varied trends across key economic sectors. While the tourism and construction industries saw notable price increases, utility and information and communication services experienced declines.
Sectoral Performance Overview
Tourism and Construction See Strong Growth
The resort sector experienced a 9.03% year-on-year increase in December 2024, driven by rising demand during the peak holiday season. Month-on-month, the sector saw a 9.53% increase, continuing its trend of seasonal price fluctuations.
Construction prices also surged, registering a 13.79% year-on-year increase in December, largely due to higher labour and material costs. October recorded the highest monthly growth in over a year, with prices rising 6.26% compared to September.
Utilities and Communication Face Declines
The utility sector, which includes electricity, water, and waste management, saw a 3.50% year-on-year decline in December 2024, mainly attributed to lower waste management costs.
Electricity prices remained relatively stable, with a slight 0.12% year-on-year decrease in December. Seasonal factors such as weather and Ramadan continued to influence consumption patterns.
In the information and communication sector, the PPI dropped by 0.64% year-on-year in December. Monthly changes fluctuated due to promotional offers and shifts in consumer behaviour, with the biggest drop recorded in October at -2.75%.
Education Sector Remains Stable
The education sector showed a modest 1.97% year-on-year increase across all categories, although general secondary education prices declined by 10.47%, reflecting changes in fee structures.
Implications and Outlook
The continued growth in tourism and construction suggests strong demand, while declines in utilities and communication highlight shifts in service pricing. The Bureau of Statistics aims to expand PPI tracking in the future by incorporating guesthouses, vessels, and manufacturing sectors to provide a more comprehensive picture of economic trends.
