10/10/2016

Economic Update: Issue 9/2016

The Central Bank of Malta has just published its latest Economic Update, based on information available up to 3 October 2016.

Overall economic sentiment improved in September, driven by a more favourable assessment by all sectors except construction. 

As regards economic activity, in July, industrial production fell again in annual terms.  In contrast, the tourism sector expanded in both July and August. Retail sales increased on a year earlier in August, following a drop in the previous month.

The labour market continued to perform solidly, with the annual growth rate of the gainfully occupied population at 4.3% in April.  Meanwhile, unemployment fell further. 

Price pressures remained moderate. The annual rate of inflation based on the Harmonised Index of Consumer Prices and the Retail Price Index both edged up in August, to 1.0% and 0.8%, respectively. 

Maltese residents' deposits continued to expand rapidly in August, while the annual rate of growth of credit to residents eased. 

As regards fiscal developments, the deficit on the Consolidated Fund narrowed in the first eight months of the year, due to an increase in tax revenue.

The Economic Update is available on the website of the Central Bank of Malta.

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