23/04/2024 11:47:00

Central Bank of Malta Business Dialogue Publication – Second edition of 2024

The latest business dialogue held between the Central Bank of Malta and non-financial corporations shows that in the first quarter of 2024, the net share of firms reporting better business conditions increased when compared to the previous quarter. It stood at 47%, up from 35% in the last quarter of the year. On balance, conditions were more positive across most economic sectors, except in the services sector.

Looking ahead, a net 39% of firms expected an improvement in short-term business activity, lower than 42% in the preceding quarter.

The net share of companies reporting higher input costs declined. Indeed, a net 42% of contacts reported that input prices have increased in recent months, down from 60% in the previous period.

The net share of firms reporting higher selling prices stood at 34% in the first quarter of 2024, 16 percentage points lower than in the previous quarter.

The net share of firms planning to invest more increased to 36%, from 10% in the previous quarter while the net share of firms planning to increase their staff complement increased by 2 percentage points, to a net 42%. Companies have continued to express concerns about labour and skill shortages and pressures to increase wages.

This publication also incorporates a box on the insights of the potential impact of the inclusion of maritime transport in the EU's ETS on firms' operations. This box finds that around 36% of firms expect a direct impact on their operations, while 33% expect no impact. At the same time, 6% of the companies contacted expect indirect impact and 25% are unsure of the impact.

The full publication is available here. The business dialogue survey can also be accessed in a new and interactive way through its dedicated dashboard.

Back to Archive