News - Economic Update 2019


Economic Update: Issue 2/2019

The Central Bank of Malta has just published its latest Economic Update based on information available up to 13 February 2019.

In January, the Bank's Business Conditions Index (BCI) was stable when compared with the previous month, and continued to suggest above-average conditions. Economic sentiment fell as lower confidence in industry and services as well as among consumers offset higher confidence in construction and retail.

In December, tourism activity accelerated compared with November. In contrast, both industrial production and retail trade fell on a year earlier.

Conditions in the labour market remained favourable as the number of registered unemployed remained low from a historical perspective and the unemployment rate declined further on year ago levels.

The annual rate of inflation based on the Harmonised Index of Consumer Prices (HICP) fell to 1.2% in December. The rate based on the Retail Price Index, which is the more relevant measure of consumer price inflation for domestic households, eased marginally to 1.5%.

Maltese residents' deposits accelerated to 5.3% in the year to December, while credit to residents rose by 4.5%.

Meanwhile, the cash-based Consolidated Fund recorded a deficit in November.

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