Economic Update
Published on 01 July 2021
R
Tourist arrivals
64.6
thousand tourists
for May 2021
In May 2021, tourist arrivals increased significantly in annual terms, after recording significant growths in April 2021 as well. This increase reflected the base effect of the significant drop in arrivals in May 2020, following the closure of the country's international borders on 27 March 2020, to curb the spread of pandemic. During May 2021, the largest number of tourist arrivals were recorded from Russia, followed by Germany and the United States.
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Inflation
Measured by the annual percentage change in Consumer Price Index at the national level
2.7
percent
as at May 2021
The rate of inflation, as measured by the annual percentage change in the national CPI, decelerated to 2.7% in May 2021, from 3.3% in April 2021. The deceleration stemmed mainly from the decline in the price of information and communication services, reflecting the reduction in telecommunication prices. Additionally, the decline in prices of vegetables and certain types of fruits contributed to the downward pressure on inflation. In contrast, the upward pressure on inflation was primarily contributed by the growth in the cost of electricity and water supply, as well as price of cigarettes. Further, increases in the cost of international air transport, as well as the prices of certain dairy products, also contributed to the upward pressure on inflation.
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Fish exports
12.6
thousand metric tonne
for May 2021
In May 2021, the volume of fish exports increased significantly both in annual and monthly terms by 286% and 184% respectively. The annual increase was mainly due to the significant increase in fresh, chilled or frozen skipjack tuna exports.
M
Broad money
Entire stock of currency and various types of deposits held by the public at depository institutions in an economy
46.07
billion rufiyaa
as at May 2021
Annual broad money (M2) growth decelerated to 19% at the end of May 2021, after registering 21% during April 2021. This was primarily driven by an increase in quasi money, owing to a substantial increase in transferable deposits denominated in foreign currency and time and savings deposits denominated in local currency, despite the decline in both time and savings deposits denominated in foreign currency. Meanwhile, narrow money also observed a notable increase, owing to a substantial increase in transferable deposits.
M
Credit To Private Sector
27.3
billion rufiyaa
as at May 2021
The annual growth of credit to the private sector by the commercial banks remained unchanged at 9% at the end of May 2021. Meanwhile, the monthly growth in credit to the private sector increased marginally to 0.5% at the end of May 2021. Similar to the previous month, growth rates were observed for most major sectors, namely tourism, construction, and real estate, except for transport and communication and commerce. Likewise, credit extended as personal loans observed a significant increase over the period.
M
Overnight deposit facility
4.7
billion rufiyaa
as at May 2021
During May 2021, average Overnight Deposit Facility (ODF) placements increased to MVR 4.7 billion. This was an annual growth of 52%, which largely reflects the increase in local currency liquidity due to monetization.
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Official reserve assets
National reserve of the country
926.06
million US dollar
as at May 2021
Official reserve assets increased to UD$926.06 at the end of May 2021 from US$887.04 at the end of April 2021. This was a growth of 5%. In annual terms, official reserve assets observed a growth of 11% during this period.
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Imports
Total import of goods, valued including the cost of insurance and freight. This does not include the import of services.
197.2
million US dollar
for May 2020
Total imports (c.i.f) observed an annual increase of 98% during the period while in monthly terms, a growth of 4% was observed. For the annual increase in total imports, the most significant increases were observed in the imports of petroleum products; food items; construction-related items; transport equipment and parts; machinery and mechanical appliances and medical and surgical supplies. In contrast, imports of pharmaceuticals and price administered staples observed declines during the review month.
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Exports
Total export of goods, valued using the freight on board basis. This does not include the export of services.
29.6
million US dollar
for May 2020
Total exports (f.o.b) increased significantly by 158% in May when compared with May 2020. In monthly terms, an increase of 48% was recorded. The annual increase in total exports stemmed mainly from the growth in domestic exports, followed by a growth in re-exports as well. The growth in domestic exports was primarily due to a sizeable increase in export earnings from frozen skipjack tuna, followed by an increase in export earnings from frozen yellowfin tuna and canned or pouched tuna, despite a decline in export earnings from fresh or chilled yellowfin tuna.