The Central Bank of Malta published results from its latest business dialogue with non-financial corporations, indicating that overall business conditions improved in the fourth quarter of 2025. The net balance of surveyed firms reporting an improvement almost doubled from the previous quarter to 52%, led by wholesale and retail and services, with construction and real estate also positive on balance, while manufacturing reported lower activity overall. Near-term expectations remained positive, with a net 19% of firms anticipating improved activity, down from 27% in the prior round. Cost pressures increased, with a net 65% of firms reporting higher costs (56% previously), although these were described as relatively mild or moderate, while the net balance raising selling prices eased to 31% from 35%. Investment intentions also moderated, with the net share planning to increase investment falling to 22% from 27%, focused on capital expenditure and digitalisation, and firms reported continued job creation but at a slower pace. The publication includes a box on cost pressures in Malta since 2023 and notes that the views reflect those of the companies interviewed rather than the Central Bank of Malta.
Central Bank of Malta 2026-01-22
Central Bank of Malta publishes business dialogue showing Q4 2025 conditions improved as cost pressures increased
The Central Bank of Malta's latest business dialogue indicates improved business conditions in Q4 2025, with a net 52% of firms reporting better conditions, particularly in wholesale, retail, and services. Near-term expectations remain positive, though cost pressures have increased, with a net 65% of firms reporting higher costs. Investment intentions and job creation have moderated, focusing on capital expenditure and digitalisation.