Malta - aerial

The Central Bank of Malta has released its latest economic update, which indicates that in August, annual growth in business activity was broadly in line with its long-term average.

The European Commission’s economic confidence indicator and employment expectations edged down when compared to July. However, both remained above their long-term average.

In August, price expectations stood well below their year-ago level in the retail sector. They also stood slightly lower among consumers and services firms. By contrast, price expectations in industry and construction were above the August 2022 level.

Activity indicators, including those for the labour market were positive.

In July, Maltese residents’ deposits were broadly unchanged in level terms from a year earlier. Meanwhile, credit expanded at a marginally faster annual rate.

Residential building permits declined in July compared with their month-ago level but were higher in annual terms. In August, the number of promise-of-sale agreements rose on a year-on-year basis, while the number of final deeds of sales fell.

The annual inflation rate based on the Harmonised Index of Consumer Prices (HICP) and the Retail Price Index (RPI) declined further in August, to stand at five per cent and four per cent, respectively.

In July, the Consolidated Fund recorded a lower deficit compared to a year earlier.

Related

Cautious optimism across sectors: Business confidence rebounds in Q1 2025, says Central Bank

April 25, 2025
by Nicole Zammit

Confidence is creeping back into Malta’s business community

Government unveils new framework to establish ‘national one-stop-shop for startups’

April 24, 2025
by Adel Montanaro

Emerging companies will be able to access the necessary support, such as an enhanced share awards and stock option scheme

Aviation leaders warn EU and local policies are jeopardising Malta connectivity

April 24, 2025
by Adel Montanaro

An event hosted by the MBN in collaboration with the IBN explored the challenges facing the tourism industry