The Central Bank of Malta’s latest Business Dialogue survey found that business conditions and near-term expectations among non-financial corporations improved in the second quarter of 2026, despite heightened geopolitical uncertainty. The net balance reporting better current conditions rose to 41% from 33% in the previous quarter, while the balance expecting higher activity increased to 49% from 42%. Construction and real estate reported the strongest current performance, while wholesale and retail had the most favorable outlook. Cost pressures intensified sharply, with the net balance reporting higher input costs rising to 86% from 68%, driven mainly by transportation, freight and raw materials. The balance raising selling prices increased more modestly to 51% from 47%, contributing to margin pressure at some firms. Investment intentions edged up to 27% from 25%, but the balance planning to increase employment fell to 44% from 60%, indicating a slower expected pace of job creation.
Central Bank of Malta2026-07-27
Central Bank of Malta survey finds stronger business conditions and expectations despite rising cost pressures
The Central Bank of Malta’s second-quarter business survey found improved current conditions and expectations, with net balances rising to 41% and 49%, respectively. Input cost pressures jumped to 86%, while selling-price increases were more limited and hiring expectations moderated.