Economic analysis and research

The Bank's Economics Division carries out a range of tasks in support of the monetary policy of the Eurosystem and to inform economic policy making more generally. These tasks include monitoring and analysing economic and financial developments, preparing projections, conducting economic research, and developing and maintaining econometric models. The Division is composed of two Departments: the Economic Analysis and Economic Research Departments.

The Division issues a number of periodic publications on economic and financial conditions in Malta. These include the Quarterly Review and a monthly Economic Update.The Division also prepares the economic content of the Annual Report and produces four sets of macroeconomic and fiscal projections each year.

The projections are informed by regular meetings that the Bank holds with firms and other institutions to better gauge underlying developments in the economy. The outcome of these discussions is published in a quarterly Business Dialogue. Staff also monitor the financial situation of households through the Household Finance and Consumption Survey, which is carried out approximately every three years. The results of these two exercises are also accessible in the form of dashboards.

The Economics Division conducts research on a variety of topics. This research is disseminated through Working Papers, Policy Notes, or shorter articles and boxes in the Bank's publications. A selection of this research is published in the annual Research Bulletin. Moreover, some research is published in peer-reviewed journals.

The Division is also responsible for developing and maintaining the Bank's economic models and other tools used for forecasting and simulation analysis, where the impact of economic shocks on key macroeconomic variables is assessed.

The Division also organises economics-related workshops and conferences, including the annual Research Workshop, and contributes towards coordinated research conducted at ESCB level through its participation in a number of networks and working groups.