News - Economic Update 2019


Economic Update: Issue 6/2019

The Central Bank of Malta has just published its latest Economic Update based on information available up to 10 June 2019.

In May, the Bank's Business Conditions Index (BCI) remained unchanged when compared with the previous month, and continued to suggest above-average conditions. Economic sentiment edged up, as higher sentiment in industry and among consumers offset lower sentiment in the retail, construction and services sectors.

In April, the number of tourist arrivals rose moderately on the same month of the preceding year. Nonetheless, spending grew strongly on a year earlier after rising marginally in March. Retail trade also rose at a faster pace. In contrast, industrial production contracted on a year earlier, although the rate of decline was weaker than that in March.

Conditions in the labour market remained favourable, as the number of registered unemployed remained low from a historical perspective. The unemployment rate stood unchanged at 3.5%.

In April, the annual rate of inflation based on the Harmonised Index of Consumer Prices (HICP) accelerated to 1.7%, while 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 1.9%.

Maltese residents' deposits in the broad monetary aggregate M3 grew by 6.1% over the twelve months to April, while credit to residents rose by 5.8%.

In April, the deficit on the cash-based Consolidated Fund narrowed, compared with a year earlier.

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