The Central Bank of Malta published results from its latest business dialogue with non-financial corporations, indicating that overall business conditions improved in the third quarter of 2025 but remained uneven across sectors. The economy-wide net share of respondents reporting an expansion rose to 27% from 22% in the previous round, although it remained below levels recorded over the last three years. Service-oriented firms were most likely to report an expansion, while conditions were also positive on balance in manufacturing and in wholesale and retail. Construction and real estate reported negative conditions overall. Near-term expectations were positive, with a net 27% of firms anticipating an improvement, led by wholesale and retail and then services; manufacturing remained cautiously optimistic, while construction and real estate expectations were negative on balance despite most firms reporting unchanged conditions. Cost pressures were reported slightly less often than in earlier rounds, though around two-thirds of firms in most sectors still reported increases; firms’ net investment intentions rose, driven by capital expenditure, expansions and refurbishments, and employment plans pointed to a faster pace of job creation. The publication also includes a box on persistent labour shortages and workforce strategies aimed at addressing them.

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