Maldives Real GDP rebounds by 75.3% in 2021 second quarter

Maldives Monetary Authority (MMA)

According to Maldives Monetary Authority (MMA) the country’s real Gross Domestic Product (GDP) rebounded strongly in Q2-2021.

Moreover, as per the central bank of Maldives the advance estimates of Quarterly National Accounts for the second quarter confirms that the real GDP bounced back by 75.3%, following the decline of 10.1% during the first quarter of 2021.

The strong rebound during the review quarter had still not exceeded above pre-pandemic levels and remained 15.9% below in comparison to Q2-2019.

Furthermore, MMA notes that the annual GDP growth in the review quarter is mainly attributed from the pick-up in tourism sector, mirroring the base effect of steep decline in the sector owing to international border closure in the same quarter in 2020.

Apart from tourism industry, other major sectors contributed positively to the Maldives economy including transport and communication and wholesale and retail trade sectors.

However, quarterly real GDP observed a marked decline in comparison with the previous quarter of 2021 due to the end of tourism peak season and re-imposition of stringent containment measures in the Maldives mainland due to rapid resurgence of Covid-19 cases in April 2021.

Meanwhile, the construction industry of Maldives had observed a contraction in annual terms during the review quarter while the economic sector had been regarded as the fastest growing sector prior to the Covid-19 pandemic.