18/10/2019

Economic Update: Issue 10/2019

In September, the Central Bank of Malta’s Business Conditions’ Index (BCI) remained unchanged when compared with the previous month, but continued to suggest slightly above-average conditions.

Economic sentiment rose above its long-term average during the month. Higher confidence in the services and industrial sectors offset lower sentiment across all other subcomponents, notably in construction.

In August, annual growth in tourist arrivals was higher than that registered a month earlier. Industrial production also rose at a faster pace compared with July. Similarly, the volume of retail trade grew significantly on a year earlier.

Conditions in the labour market continued to be favourable, with the number of registered unemployed and the unemployment rate remaining low from a historical perspective.

The annual inflation rate based on the Harmonised Index of Consumer Prices (HICP) edged up to 1.9% in August. The rate based on the Retail Price Index (RPI), which is the more relevant measure of consumer price inflation for domestic households, was stable at 1.7%.

Maltese residents’ deposits grew at a slower annual pace of 4.6% in the year to August, while credit to Maltese residents rose by 5.8% over this period.

The cash-based Consolidated Fund recorded a larger surplus compared with August 2018.

The Economic Update is available on the website of the Central Bank of Malta.

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