Economic update: issue 7/2017 published

The Central Bank of Malta has just published its latest Economic Update, based on information available up to 18 July.

The Bank’s Business Conditions Index edged down in June, signalling slightly below average activity levels. However, economic sentiment rose marginally during the month, as improved sentiment in construction, industry and among consumers offset weaker sentiment in the services and retail sectors.

In May, retail sales rose in annual terms. Tourism activity also expanded further. In contrast, industrial production decreased slightly on the corresponding month of 2016.

Labour market conditions remained favourable, as employment continued to grow and the number of registered unemployed declined further.

Price pressures remained moderate, with the annual rate of inflation based on the Harmonised Index of Consumer Prices at 1.1% in May and 1.0% in June.

Maltese residents’ deposits rose at an annual rate of 10.6% in May, while credit to residents increased by 1.3%. As regards fiscal developments, the cashbased Consolidated Fund balance showed a small deficit in the first five months of 2017, as interest payments exceeded the primary surplus. The Economic Update is available on the website of the Central Bank of Malta www.centralbankmalta.org.