Business activity in the Maldives continued to expand across most major sectors during the fourth quarter of 2025, supported by tourism-driven momentum and improving financial conditions, according to the latest Quarterly Business Survey released by the Maldives Monetary Authority.
The survey found that all sectors covered recorded an overall increase in activity during the quarter, with the exception of wholesale and retail trade, which showed mixed developments. Despite this divergence, employment levels rose across all surveyed sectors, pointing to continued labour demand as businesses responded to higher activity levels.
Tourism remained the strongest performer, reflecting seasonal patterns as the peak travel period took hold. Businesses in the sector reported higher revenues, stronger resort bookings, rising room rates, and increased employment during the quarter. While expectations for the first quarter of 2026 remained positive, tourism operators indicated a more moderate outlook compared to the previous quarter, suggesting a potential easing in growth momentum as the peak season progresses.
The construction sector also recorded an expansion in activity, with firms reporting higher construction volumes and order books. Employment levels increased, while financial and overall business conditions turned positive after remaining subdued in earlier quarters. Looking ahead, construction firms expressed continued optimism, though expectations pointed to slower employment growth alongside sustained cost pressures and higher capital expenditure plans.
In contrast, activity in the wholesale and retail trade sector showed signs of strain. Sales volumes declined sharply during the quarter, accompanied by falling average selling prices. Despite these pressures, firms reported improvements in their financial and overall business situations, suggesting that cost adjustments and inventory management may have helped stabilise balance sheets. Expectations for the upcoming quarter were more positive, although businesses anticipated continued downward pressure on prices.
The transportation and communication sector recorded growth in demand and revenue during the quarter, although employment growth slowed and wage costs increased. While business sentiment for early 2026 remained generally positive, expectations weakened compared to the previous quarter, with firms expressing caution about future demand and overall business conditions.
Across sectors, businesses reported rising input prices during the quarter, with expectations diverging for the period ahead. Tourism firms anticipated slower growth in costs and prices, while construction and transportation firms expected further increases. Wholesale and retail businesses, meanwhile, expected cost pressures to persist alongside declining selling prices.
Access to credit remained a key constraint. The survey showed that credit conditions stayed tight across most sectors, with tourism being the only sector reporting some easing. Looking ahead, businesses in most sectors expect financing conditions to remain restrictive, highlighting continued pressure on private sector investment despite improving activity levels.
