The Maldives’ transport and communication sector saw a notable slowdown in the second quarter of 2025, according to the Maldives Monetary Authority’s Quarterly Business Survey. The report shows that key measures such as revenue and demand fell sharply, though businesses remain optimistic about the months ahead.
The survey uses an “index” to measure changes in business conditions. An index above zero indicates that more businesses experienced an improvement than a decline, while an index below zero means the opposite. The further away the number is from zero, the stronger the change in either direction.
In Q2, the total revenue index dropped 57 points to -65. This means many more businesses saw their income fall compared to those that saw it rise. Demand also weakened significantly, with the volume of demand index falling 119 points to -36, indicating that orders and service usage fell for most companies in the sector.
Employment levels were more stable. The number of employees index inched up by one point to 54, showing that slightly more businesses hired staff than reduced their workforce. However, wage growth slowed, with the wages and other labour costs index falling 52 points to 39, meaning that while salaries were still rising for some, the pace of increase was much slower.
Costs for businesses eased, with the input prices index falling 60 points to 33. This means that fewer companies were facing rising costs for things like fuel, maintenance, and equipment. However, the prices they charged customers stayed negative at -12, suggesting many companies were unable or unwilling to raise their rates.
Financially, the picture remained challenging. The financial situation index slipped to -17, meaning more businesses felt their finances had worsened than improved. The overall business situation index stayed negative at -31, reflecting that most companies saw no improvement in general conditions.
Looking ahead to the third quarter, sentiment is much brighter. The expected revenue and demand indices both improved to 54, showing that more companies believe things will get better than worse. Hiring plans are still positive at an index of 31, and capital spending intentions are strong, with the capital expenditure index at 83, a sign that businesses plan to invest in equipment or upgrades.
Although the expected financial situation index fell to 13, it remained positive, indicating that more businesses expect their finances to improve than decline. The overall business outlook also turned positive at 23, pointing to a sector that, despite a challenging Q2, expects recovery in the coming months.
