Construction; fastest growing economic sector forced to hit brakes in 2020

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Renovation works of Kulhudhuffushi Regional Hospital | Photo: MTCC

Construction industry, the fastest growing economic sector of Maldives over the past years saw a significant slow-down in 2020.

Moreover, Ministry of Finance report the sector was “heavily hit by the adverse effects of the Covid-19 pandemic.”

Many of the public infrastructure projects at ongoing capacity saw unprecedented delays due to the viral outbreak in Maldives as well.

Meanwhile, performance of construction sector observes a progress by 7.2% on average between 2017 and 2019.

However, due to the global pandemic activities in Maldives construction sector saw a dwindle of 11.4% last year.

Furthermore, construction related imports saw a massive 36.4% decline during the first 8 months of 2020.

Import expenditure drop comes mostly due to disruptions in the supply-chain over the pandemic, which lead towards travel restrictions and border closure.

Meanwhile, the island nation is trekking towards economic recovery in 2021.

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