29/10/2025 11:57:00

Central Bank of Malta issues October Economic Update

Business activity above average, amid lower uncertainty

The Bank's Business Conditions Index shows that in September, annual growth in business activity increased on a month earlier and stood above its historical average. The Bank's Economic Policy Uncertainty Index, an indicator that monitors economic policy uncertainty by synthesising information gleaned from Maltese news portals, declined marginally but remained above its historical average.

In September, the European Commission's Economic Sentiment Indicator and the Employment Expectations Indicator rose on a month earlier. Both indices stood above their long-term average.

In August, industrial production and retail trade rose at a faster pace in annual terms. In July, services production showed the first signs of recovery since February 2025.

The unemployment rate continued to stand at a historical low of 2.9%.

In August, permits for residential buildings increased from their year-ago level. In September, the number of residential promise-of-sale agreements and the final deeds of sale increased on a year earlier.

In August, the annual rate of change of Maltese residents' deposits and credit moderated slightly compared to the preceding month.

In September, the annual inflation rate based on the Harmonised Index of Consumer Prices (HICP) stood at 2.4%, lower than the previous month's rate of 2.7%. HICP inflation excluding food and energy stood at 2.3%. While overall HICP inflation stood above the euro area average, HICP inflation excluding food and energy stood below it. According to the Retail Price Index (RPI), inflation fell to 2.4% in September, from 2.7% in August.

In August, the Consolidated Fund registered a larger surplus compared with a year earlier, due to a strong rise in government revenue and a reduction in government expenditure.

The full Economic Update is available here.

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