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News - Economic Update 2019

19/08/2019

Economic Update: Issue 8/2019

The Central Bank of Malta has just published its latest Economic Update based on information available up to 9 August 2019.

In July, 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 down marginally during the month, mainly reflecting lower sentiment in industry. However, it remained above its long-term average.

In June, the annual growth rate of tourist arrivals and tourist expenditure rose when compared with the preceding month. Similarly, the volume of retail trade grew on a year earlier. Industrial production rose in annual terms, following a contraction in May.

Conditions in the labour market remained favourable, as the number of registered unemployed and the unemployment rate remained low from a historical perspective. The unemployment rate edged down to 3.4%

In June, the annual rate of inflation based on the Harmonised Index of Consumer Prices (HICP) rose marginally to 1.8%. The rate based on the Retail Price Index (RPI), which is the more relevant measure of consumer price inflation for domestic households, remained stable, at 1.9%.

Maltese residents' deposits in the broad monetary aggregate M3, and credit to residents, each grew by 5.7% over the twelve months to June.

In June, the cash-based Consolidated Fund registered a larger deficit compared with a year earlier.

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

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