28/04/2023

Central Bank of Malta issues April Economic Update

The Bank's Business Conditions Index indicates that in March, annual growth in business activity stood above its long-term average, estimated since January 2000.

The European Commission's confidence surveys show that economic sentiment in Malta rose in March when compared with a month earlier, and stood above its long-term average, which is estimated since November 2002. In month-on-month terms, sentiment increased in the retail and services sectors and in industry but declined in the construction sector and among consumers.

Additional survey information show that in March price expectations stood firmly above their year-ago level in the construction sector, and to a lower extent, among services firms. By contrast, price expectations among retailers and consumers, as well as industry stood lower.

The European Commission's Uncertainty Indicator for Malta increased in March, indicating higher uncertainty. Uncertainty increased mostly in the construction sector.

In February, growth in industrial production picked up. Growth in the volume of retail trade remained strong in annual terms but was slower when compared with January. The unemployment rate stood at 3.0% in February, unchanged from the rate registered in the previous month, and marginally lower than that of 3.1% registered in February 2022.

Commercial building and residential permits decreased in February, relative to their year-ago levels, but exceeded those issued in January. In March, the number of promise-of-sale agreements rose on a year-on-year basis while, the number of final deeds of sale fell.

The annual inflation rate based on the Harmonised Index of Consumer Prices (HICP) stood at 7.1% in March, up from 7.0% in the previous month. On the other hand, inflation based on the Retail Price Index (RPI) edged down to 7.0%, from 7.1% in February.

In February, the Consolidated Fund recorded a surplus when compared with a deficit a year earlier, as government revenue rose while government expenditure declined slightly.

Annual growth in Maltese residents' deposits expanded at a slower rate of 3.6% in February. Meanwhile, annual growth in credit to Maltese residents moderated to 6.4%.

The full Economic Update is available here.

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