22/01/2026 11:45:00

Central Bank of Malta Business Dialogue Publication – First Edition Of 2026

The latest business dialogue held between the Central Bank of Malta and non-financial corporations shows that in the fourth quarter of 2025, overall business conditions improved among surveyed firms as the net balance reporting an amelioration almost doubled from the previous quarter, reaching 52%.¹

Among the main sectors surveyed, wholesale and retail and services firms reported the most expansion in activity. On balance, conditions were also similarly positive in the construction and real estate sector. On the other hand, the manufacturing sector reported lower activity on balance. Although half of the respondents in this sector reported stable conditions, those experiencing declining activity exceeded those reporting growth.

Near-term expectations for business activity were also positive, with a net 19% of firms anticipating an improvement, down from 27% in the previous survey round. The wholesale and retail sector reported the most favourable outlook, followed by the construction and real estate sector. By contrast, the near-term outlook in the manufacturing sector is stable on balance, while in the services sector positive expectations marginally outweigh negative ones.

            
            

In the quarter under review, cost pressures increased for a net share of 65% of interviewed firms compared to 56% in the preceding quarter. However, these cost pressures were relatively mild or moderate. Meanwhile, the net balance of firms raising selling prices declined to 31%, from 35% in the preceding quarter.

The net share of firms intending to increase investment fell to 22% from 27% in the third quarter and such investments are expected to be driven by investment in capital expenditure and digitalisation. Responses collected in the latest round of contacts also suggests a positive pace of job creation, though at a slower pace than in the previous quarter (net share of recruiting firms fell from 60% to a 46%).

This publication also includes a box focusing on cost pressures in Malta since 2023.

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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