The Central Bank of Malta’s July Economic Update shows that economic activity moderated but remained broadly aligned with its historical average. Business activity growth was slightly below its long-term average in June, mainly because of timing effects on tax revenue, while manufacturing, services and retail growth remained above their respective historical averages. Tourism expenditure rose 15.5% year over year in May, and consumer sentiment climbed to around historic highs in June. Annual Harmonised Index of Consumer Prices inflation eased to 2.0% in June from 2.1% in May, standing 0.8 percentage points below the euro area rate, while inflation excluding food and energy was 2.2%. The unemployment rate was unchanged at 3.5% in May but exceeded the 2.8% recorded a year earlier. The Consolidated Fund posted a EUR 112.5 million deficit in May, reversing a EUR 115.4 million surplus a year earlier, because of the timing of corporate income tax receipts and higher capital spending. Residents’ deposits grew 6.7% year over year, while credit growth edged down to 7.6%.
Central Bank of Malta2026-07-31
Central Bank of Malta reports economic activity near historical average as inflation falls to 2 percent
The Central Bank of Malta reported that economic activity moderated but remained broadly in line with its historical average, supported by strong tourism and consumer confidence. Inflation fell to 2.0% in June, while the May fiscal balance moved into deficit because of tax-receipt timing and higher capital spending. Residents’ deposits grew 6.7% and credit expanded 7.6% year over year in May.