30/09/2026 10:55:00

Central Bank of Malta issues September Economic Update

Economic activity remained broadly aligned with its historic average

Economic activity in Malta remained broadly consistent with its long-term average. The Bank's Business Conditions Index indicates a marginal decline in business conditions in August, and remained slightly below its historical average. On the other hand, industrial and services production and retail activity grew at a faster pace in July, as did services production in June. The tourism sector continued to perform well in July.

Consumer sentiment moderated in August but remained well above its historic average.

Demand for property remains relatively strong. In August, final deeds and promise-of-sale agreements were higher when compared with a year earlier, and on the previous month. On the supply side, approved permits for residential and commercial buildings decreased compared with the previous month. When compared with the previous year, residential permits declined while commercial permits remained broadly unchanged.

In July, the unemployment rate remained unchanged at 3.5% compared with June but stood above the rate recorded in the same month a year earlier. Meanwhile, consumers' unemployment expectations in August increased from a month earlier.

Malta's inflation rate declined marginally in August and remained well below that in the euro area. The annual inflation rate based on the Harmonised Index of Consumer Prices (HICP) stood at 2.0%, from 2.1% in July, while HICP inflation excluding food and energy stood at 2.2%. Across the euro area, both HICP inflation and HICP inflation excluding food and energy were higher than in Malta due to higher energy inflation. According to the Retail Price Index (RPI), inflation in August decreased to 2.6%.

In July, the Consolidated Fund reported a larger deficit compared with a year earlier, reflecting a stronger increase in government expenditure relative to government revenue.

In July, the annual rate of change of Maltese residents' deposits increased, compared with June. Meanwhile, credit to residents continued to expand but at a slower pace.

The full Economic Update is available here.

Back to Archive