Maldives Monetary Authority’s Quarterly Business Survey reveals tourism decline during Q2-2015

MMAThe Maldives Monetary Authority has published their Quarterly Business Survey for the 2015 Second Quarter. The survey, dated June 2015, Volume 3, Issue 2, was conducted by the MMA to “obtain a quick assessment of current business trends and expected future economic activity.”

The publication describes the survey’s respondents as “senior managers or top management of businesses.” Responses were collected between 25 June 2015 to 7 July 2015. 143 large enterprises in the three main sectors of the economy, which are construction, tourism, and wholesale and retail trade, were sent survey forms.  A total of 93 enterprises responded during the survey period which represents an overall response rate of 62%.

“The questions cover the views of the senior management (for the past quarter and expectation for the next quarter) on the direction of change in various business variables such as sales, output, prices, exports, capacity utilisation and employment which are useful for analysing and predicting economic activity,” the survey explains.

A summary of the findings states that:

  • Businesses in the construction, and wholesale and retail trade reported an increase in the level of business activity in Q2-2015 compared with Q1-2015, while businesses in the tourism sector reported a decline.
  • Businesses in all of these three sectors are predicting further improvements in business activity in Q3-2015 when compared with Q2-2015.
  • With regard to the current level of employment, businesses across sectors surveyed indicated an increase in Q2-2015 compared with Q1-2015 (except for tourism sector, which reported a decline).
  • All sectors anticipated an increase in employment in Q3-2015, reflecting the optimism shown by majority of businesses in this quarter.
  • With regard to prices charged, majority of businesses in the wholesale and retail trade sector and construction sector reported no change in Q2-2015 over Q1- 2015, while businesses in the tourism sector reported a decline.
  • The majority of businesses in all sectors expect prices to remain the same except for the tourism sector, where prices are expected to decline.
  • As for business costs, respondents across all sectors experienced an increase in all labour-related costs and other input costs in Q2-2015 when compared with Q1-2015. Businesses anticipate a further increase in all business costs in Q3-2015 as well.

To download a copy of the complete Quarterly Business Review, please visit the MMA website.