Most businesses in the Maldives expect their financial conditions to improve in the second quarter of 2025, with the exception of the tourism industry, according to the latest quarterly business survey by the Maldives Monetary Authority (MMA).

The survey revealed that while the tourism sector anticipates a decline due to the upcoming off-season, businesses in wholesale, retail, transport, communications, and construction are more optimistic about financial recovery and operational growth in the coming months.

In the first quarter of 2025, the tourism, wholesale, and retail sectors reported expansion, while the transport and communications sector showed mixed performance. The construction sector, however, experienced a decline.

Hiring trends mirrored these developments. Recruitment increased in the tourism, wholesale, and retail sectors. The transport and communications sectors also added staff, although at a slower pace. The construction sector, on the other hand, saw a decline in hiring activity.

Looking ahead, most businesses in wholesale, retail, transport, and communications anticipate growth in the next quarter. In contrast, tourism operators remain cautious, citing seasonal downturns.

Financially, businesses in tourism, wholesale, and retail reported strong performance in the first quarter. While construction companies remained in a weaker position, they showed signs of recovery. The transport and communications sectors were the only ones to report a worsening financial condition compared to previous quarters.

Despite the seasonal challenges facing tourism, the overall outlook is positive; the survey indicates that the general business environment across major sectors has improved compared to the same period last year, with most businesses expecting continued financial improvement through the second quarter.