Construction industry imports down while loans increase

Photo shows a construction worker in a building site. (Sun Photo/Ali Naseer)

Quarterly Economic Bulletins of the Maldives Monetary Authority (MMA) has shown that a 53 percent reduction in the import of construction materials in the second quarter of 2020 was observed.

Statistics shared by the MMA read that the number of loans issued for the construction industry had increased by four percent. The highest number of loans were issued for residential housing purposes.

The second-highest number of loans were issued for resort development and commercial real estate.  The number of loans for resort renovations decreased during this period.

A slowdown of 24.2 percent was identified in the first quarter of 2020 for the construction industry. It is estimated that this figure would increase for the second quarter. 

Obstructions in the supply of goods from within the country as well as the movement of people were faced due to the restrictive measures imposed in light of COVID-19 in the Maldives.

The recruitment of laborers for the construction industry were also faced disrupted due to the virus. Construction work in the capital were at a complete stop from April 15 to May 28, due to the restrictive measures. 

The report noted that compared to last year, a fall of USD 77.8 million was observed in terms of items imported for the construction industry.