The Maldivian economy demonstrated mixed results in October 2024, with signs of recovery in some sectors, while others experienced significant challenges, according to the Maldives Bureau of Statistics’ Monthly Indicators of Economic Growth (MIEG).
The report highlights that monthly real GDP stood at MVR 8,593 million, reflecting 0.8% growth compared to October 2023, but showing a more substantial 10% increase over the preceding month, September 2024.
Tourism Drives Growth
The Accommodation and Food Services sector was the largest contributor, maintaining its critical role in the economy. This sector grew by 35% compared to September and 3.4% year-on-year, driven by increased tourist arrivals and bed nights recorded in October. Tourist bed nights rose significantly by 267,001 compared to the previous month, signalling a seasonal uptick in tourism activity.
The Transportation and Communication sector also performed well, recording a growth of 7.2% year-on-year and 9% month-on-month. The sector’s performance is closely tied to the surge in tourism, as transport services directly benefited from higher visitor numbers.
Construction and Fisheries Face Declines
Despite some bright spots, other key sectors struggled. The Construction sector experienced a significant 11.1% year-on-year decline, reflecting volatility caused by rising material costs and tighter financial conditions. Although it showed a slight month-on-month growth of 0.7%, the long-term trends remain concerning.
The Fisheries sector, a cornerstone of the Maldivian economy, saw the steepest decline, with growth contracting by 3.5% year-on-year. Seasonal factors and reduced fish catch volumes have compounded these challenges.
Wholesale and Retail Trade Shows Moderate Improvement
The Wholesale and Retail Trade sector recorded a 5.2% year-on-year growth but slowed to 0.2% compared to September 2024. This indicates steady activity in imports and domestic consumption, though slower momentum compared to the previous month.
Electricity and Water Management Steady
The Electricity, Water, and Waste Management sector grew robustly, showing a 12.8% year-on-year increase and 9.5% month-on-month growth. Expansion in electricity production and water distribution contributed to this positive trend.
Overall Economic Outlook
While October showed positive momentum in sectors such as tourism and utilities, ongoing challenges in fisheries and construction underscore the uneven nature of the recovery. Policymakers will likely focus on bolstering these underperforming sectors to maintain broader economic stability.
