The Maldives’ wholesale and retail trade sector posted notable growth during the first quarter of 2026, reflecting stronger commercial activity across the market even as businesses faced a substantial increase in operating expenses. According to the Maldives Monetary Authority’s Quarterly Business Survey, which is compiled at the end of each quarter through direct responses from businesses in the industry, the sector’s ‘Volume of Sales Index’ rose by 24 points to reach 4, indicating that overall trade activity expanded during the period.
The latest findings point to a business environment that remained active and resilient during the opening months of the year. The increase in sales volume suggests that businesses in the wholesale and retail segment were able to sustain momentum and continue serving market demand despite a more challenging cost environment. This reflects the importance of the sector within the broader Maldivian economy, where wholesale and retail activity remains a key contributor to domestic commerce, consumer access, and the circulation of goods across the country.
At the same time, the survey shows that businesses operated under mounting financial pressure as expenditure levels rose sharply. The index measuring the number of employees increased by 1 point to 70, signalling that firms generally maintained or slightly expanded their workforce during the quarter. Labour-related costs, however, increased at a much faster pace. The index tracking wages and other employee-related expenses surged by 67 points to 80, indicating that businesses were required to absorb significantly higher staffing costs while continuing their operations.
Cost pressures were also visible in broader business expenses. The ‘Cost of Sales Index’ rose by 95 points to 68, underscoring the extent of the increase in operating and procurement-related costs. According to the survey, 78 per cent of businesses reported that their operational expenses had grown during the quarter. As a result of these higher costs, businesses also adjusted their pricing. The index representing average selling prices climbed by 106 points to 66, suggesting that a considerable share of firms passed part of the cost burden on to the market through higher prices.
While the first quarter reflected positive commercial expansion, expectations for the second quarter of 2026 indicate a slower pace of growth. The MMA survey showed that business owners’ sentiment regarding the condition of the sector weakened compared to the previous quarter, causing the main forward-looking indices projected during the first quarter to shift into negative territory. This suggests that although trade activity remained strong at the start of the year, businesses are approaching the coming months with greater caution amid ongoing cost challenges and evolving market conditions.
Views on employment prospects remain mixed. Although the index forecasting future increases in employee numbers declined by 10 points, it remained positive at 3 points, indicating that some businesses still expect modest hiring growth in the second quarter. This points to a degree of continued confidence within the sector, even as firms evaluate costs and demand more carefully.
Looking ahead, expenditure-related indicators continue to signal further increases, though at different rates. The index projecting future cost of sales fell by 58 points to 22, while the index forecasting average selling prices rose by 53 points to 12. Both indicators remained in positive territory, showing that businesses still expect costs and prices to move upward in the near term, even if the pace of increase differs from that recorded during the first quarter.
Overall, the Maldives’ wholesale and retail trade sector began 2026 on a stronger footing in terms of activity and sales, supported by continued market engagement and business continuity across the industry. Although higher labour expenses, rising operational costs, and pricing pressures remain central concerns, the sector’s performance in the first quarter demonstrates its capacity to expand even under difficult cost conditions, while business expectations for the months ahead reflect a more measured but still active outlook.
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