27/07/2026 08:38:00

Central Bank of Malta Business Dialogue Publication – Third edition of 2026

The latest business dialogue held between the Central Bank of Malta and non-financial corporations shows that in the second quarter of 2026, many of the firms contacted continued to note stable or improving conditions, with the net balance reporting an amelioration in current conditions, improving to 41% from 33% in the previous quarter.¹ Among the main sectors surveyed, the construction and real estate sector was the most likely to report an expansion in activity.

Although geopolitical uncertainty continued to weigh on the short-term outlook, near-term expectations for business activity improved, with a net 49% of firms anticipating higher activity, up from 42% in the previous survey round. The wholesale and retail sector reported the most favourable outlook, followed closely by the construction and real estate sector. Expectations in both the services and manufacturing sectors also remained broadly positive, despite heightened uncertainty related mainly to the geopolitical climate.

In this round, the share of firms reporting higher cost pressures increased significantly, to 86%. Yet, the net balance of firms raising selling prices rose only marginally and stood lower, at 51%.

The figures represent the Net Share of respondents in percentage points (pp) for 2026, Q2

            
            

The net share of firms intending to increase investment rose slightly with investment driven mainly by capital expenditure, business expansion and diversification efforts. Responses collected in the latest round of contacts also suggest a positive pace of job creation, though hiring expectations moderated compared to the previous quarter.

This publication includes a box on developments in the construction and real estate sector since 2022.

The full publication is available here. The Business Dialogue survey can also be accessed in an interactive way through its dedicated  dashboard.

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¹ The views expressed are solely those of the companies interviewed and do not necessarily reflect the views of the Central Bank of Malta. 

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