The Central Bank of Malta’s September Economic Update found that economic activity remained broadly consistent with its long-term average, although its Business Conditions Index declined marginally in August and stayed slightly below average. Industrial production and retail activity accelerated in July, services production strengthened in June and tourism performed well. Consumer confidence moderated but remained above its historic average, while property demand remained relatively strong. Annual Harmonised Index of Consumer Prices inflation eased to 2.0% in August from 2.1% in July, 1.2 percentage points below the euro area rate, while inflation excluding food and energy stood at 2.2%. The unemployment rate held at 3.5% in July but rose from 2.5% a year earlier. The Consolidated Fund deficit widened year over year to EUR 88.6 million in July as expenditure grew faster than revenue. Residents’ deposits increased 8.3% annually, while credit growth slowed to 7.7% because of lower credit to general government.
Central Bank of Malta finds economic activity near historic average as inflation eases to 2.0%
The Central Bank of Malta found economic activity broadly in line with its historic average, despite a marginal deterioration in business conditions in August. Inflation eased to 2.0%, while July unemployment remained at 3.5% and the fiscal deficit widened. Deposit growth accelerated to 8.3%, but credit growth slowed to 7.7%.