The Central Bank of Malta’s April Economic Update found that economic activity remained strong, with annual business activity growth above its long-term average in March and services outperforming manufacturing. Tourism expenditure rose 16.9% year over year in February and retail trade growth accelerated, while industrial production contracted 3.4%. Economic sentiment remained well above its long-term average despite the Middle East conflict, and inflation based on the Harmonised Index of Consumer Prices held at 2.3% in March despite higher global energy prices. Property supply and demand remained buoyant, while labor demand stayed above historical levels and the unemployment rate was unchanged at 3.5% in February for a third month. The Consolidated Fund surplus increased to EUR 381.3 million in February from EUR 90.6 million a year earlier, mainly because of the timing of corporate tax receipts. Annual resident deposit growth accelerated to 6.6%, while credit growth moderated to 7.7%.