The Maldives Bureau of Statistics has released the latest Producer Price Index (PPI) report, revealing a varied performance across the country’s key economic sectors during the fourth quarter of 2024. While the tourism and construction industries witnessed notable price increases, the utility and information and communication services experienced declines.
Tourism and Construction Sectors Soar
The resort sector in the Maldives saw a remarkable 9.03% year-on-year increase in prices in December 2024, driven by the rising demand during the peak holiday season. On a month-on-month basis, the sector recorded a 9.53% surge, continuing its trend of seasonal price fluctuations.
Construction prices also experienced a significant surge, registering a 13.79% year-on-year increase in December, largely attributed to higher labor and material costs. October witnessed the highest monthly growth in over a year, with prices rising 6.26% compared to September.
Utilities and Communication Face Headwinds
In contrast, the utility sector, which encompasses electricity, water, and waste management, saw a 3.50% year-on-year decline in December 2024, primarily due to lower waste management costs.
Electricity prices remained relatively stable, with a slight 0.12% year-on-year decrease in December. Seasonal factors, such as weather and Ramadan, continued to influence consumption patterns.
The information and communication sector also experienced a 0.64% year-on-year drop in the PPI during December. Monthly changes fluctuated due to promotional offers and shifts in consumer behavior, with the biggest drop recorded in October at -2.75%.
Education Sector Maintains Stability
The education sector showed a modest 1.97% year-on-year increase across all categories, although general secondary education prices declined by 10.47%, reflecting changes in fee structures.
Implications and Outlook
The continued growth in tourism and construction suggests strong demand in these sectors, while the declines in utilities and communication highlight shifts in service pricing. The Maldives Bureau of Statistics aims to expand its PPI tracking in the future by incorporating guesthouses, vessels, and manufacturing sectors to provide a more comprehensive understanding of the country’s economic trends.
About the Maldives Bureau of Statistics: The Maldives Bureau of Statistics is the national statistical organization responsible for collecting, analyzing, and disseminating official statistics in the Maldives. It plays a crucial role in monitoring the country’s economic performance and providing data-driven insights to policymakers and businesses.
