The Central Bank of Malta’s March Economic Update found that annual business activity growth edged up in February and remained above its historical average. Economic sentiment fell from January’s record high but remained elevated, while employment expectations dropped below their long-term average and uncertainty increased. Harmonised Index of Consumer Prices inflation was unchanged at 2.3%, above the euro area rate, while inflation excluding food and energy was 2.2%, below the euro area equivalent. Industrial production rose 5.6% year on year in January after contracting in December, and retail trade growth held at 4.8%. The unemployment rate increased to 3.4%, its highest since March 2024, while February residential sale agreements and final deeds both increased from a year earlier. The January Consolidated Fund deficit narrowed to EUR 151.7 million as revenue growth exceeded higher expenditure, while annual growth in residents’ deposits and credit moderated to 5.3% and 7.9%, respectively.
Central Bank of Malta2026-03-30
Central Bank of Malta reports elevated business activity alongside weaker sentiment and higher uncertainty
The Central Bank of Malta reported that business activity remained above its historical average in February, although economic sentiment weakened, employment expectations fell and uncertainty increased. Inflation held at 2.3%, while January brought stronger industrial production, a higher 3.4% unemployment rate and slower growth in residents’ deposits and credit.