The latest Quarterly Business Survey from the Maldives Monetary Authority indicates that overall business activity expanded across most major sectors in the third quarter of 2025, with the tourism industry the only exception. While tourism businesses reported mixed performance, construction, wholesale and retail trade, and transportation and communication all recorded stronger activity during the period.
According to the survey, conducted between 25 September and 12 October, employment increased in every sector, though the pace of hiring slowed in all but tourism. Businesses also faced rising input prices, with selling prices declining in most sectors except wholesale and retail trade. Financial conditions weakened across the board, apart from the transportation and communication sector, which registered an improvement. Access to credit remained tight for all sectors and is expected to stay constrained in the coming quarter.
Tourism firms reported declines in total revenue, although the drop was less severe than the previous quarter. Bookings, however, showed improvement, and businesses anticipate a substantial rebound in Q4 as the peak season begins. Expectations for revenue, bookings, room rates and the overall business environment were strongly positive, suggesting renewed confidence heading into the year’s final quarter.
The construction sector continued to expand but at a slower pace. While the volume of activity remained positive, selling prices fell sharply, and firms reported weaker overall business conditions. Looking ahead, companies remain cautiously optimistic but expect a moderation in activity and sustained cost pressures.
Wholesale and retail businesses posted one of the strongest rebounds in the quarter, with notable increases in sales, orders and cost of goods sold. Despite this, the sector’s financial situation deteriorated significantly, reflecting squeezed margins and rising operating costs. Expectations for Q4 remain upbeat, with firms anticipating higher sales and improved financial performance.
The transportation and communication sector showed clear signs of recovery as both revenue and demand turned positive. Businesses also reported improvements in their financial situation and overall outlook. Expectations for the coming quarter are highly optimistic, supported by rising demand and planned capital spending.
Across all sectors, businesses continue to grapple with rising input costs, credit constraints and tighter financial conditions. Nevertheless, sentiment for the final quarter of 2025 is broadly positive, driven largely by anticipated gains in tourism and continued momentum in trade and transport.
