The wholesale and retail trade sector advanced during the first quarter of 2026, the Maldives Monetary Authority reported in its Quarterly Business Survey, driven by an expansion in commercial activity even as businesses contended with a sharp rise in operational expenses. Compiled at the conclusion of every quarter by directly questioning businesses operating within the industry, the assessment showed that the 'Volume of Sales Index', which illustrates the total amount of commercial trade conducted, increased by 24 points to reach 4.
The expansion occurred alongside significant upward pressure on expenditures. The index reflecting the number of employees rose by 1 point to reach 70, while the metric tracking wages and other labour-related costs surged by 67 points to reach 80, the central bank indicated. Profit margins faced concurrent pressure, with the 'Cost of Sales Index' experiencing a substantial increase of 95 points, climbing to 68, as 78 per cent of surveyed businesses noted that their operational expenses had grown. Driven by these escalating expenses, the index representing average selling prices increased by 106 points, ultimately rising to 66.
The momentum documented in the first three months of the year is projected to moderate. Business owners' expectations regarding the state of the sector have diminished for the second quarter of 2026, the findings highlighted, causing primary indices forecasted during the first quarter to turn negative. Differing opinions exist among business owners regarding anticipated changes to the labour market. Although the index forecasting an increase in employee numbers declined by 10 points, that metric remained in positive territory at 3 points.
Projections for expenditures continue to indicate upward movement, though at varying paces. The index projecting the future cost of sales decreased by 58 points to sit at 22, while the index forecasting average selling prices climbed by 53 points to reach 12, leaving both forward-looking indicators in positive territory, the MMA report showed.