The Central Bank of Malta’s latest Business Dialogue survey found that business activity remained resilient in the first quarter of 2026, although reports of improving conditions became less common. The net balance of firms reporting better conditions fell to 33% from 52% in the previous quarter, reflecting softer services growth and stabilization in construction, real estate and trade, while manufacturing improved. Near-term sentiment strengthened sharply, with the net balance expecting higher activity rising to 42% from 19%, its highest level in almost two years. Cost and pricing pressures increased, with the net balance reporting higher input costs edging up to 68% from 65% and the share raising selling prices climbing to 47% from 31%. Employment and investment intentions also strengthened, reaching net balances of 60% and 25%, respectively, while expected wage growth was most commonly in the 4% to 5% range. Firms reported limited operational effects from the Middle East conflict so far, but warned that prolonged escalation could cause shipment delays, stock shortages and higher transport and input costs.
Central Bank of Malta2026-04-29
Central Bank of Malta survey finds business conditions easing, near-term outlook strongest in almost two years
The Central Bank of Malta found that the net balance reporting improved business conditions fell to 33% in the first quarter of 2026, while the near-term expectations balance rose to 42%, its highest in almost two years. Cost and selling-price pressures increased, alongside stronger employment and investment plans. Firms reported limited effects from the Middle East conflict so far but saw risks from a prolonged escalation.