Malta Insights

RETAIL REGISTERS ONE OF THE HIGHEST ANNUAL INCREASES IN THE EU

Total retail trade grew by 22 per cent between May 2020 and May 2021, well above the 9.0 per cent average registered in the EU. Data by Eurostat shows that the highest increase was recorded by Bulgaria (23.9%) and Ireland (22.4%).

Compared with the April 2021, the volume of trade in Malta went up by 2.6 per cent, below the EU average of 4.63 per cent. France recorded the highest growth (9.9%) followed by the Netherlands (9.3%) and Estonia (8.1%).

On the other hand, Latvia, Finland, and Luxembourg registered a decrease month-on-month.

YOUTH UNEMPLOYMENT DROPS BELOW TWO THOUSAND

Youth unemployment stood at 1,944 in May, the first time it fell below 2,000 in a year. Figures by the National Statistics Office show a month-on-month decrease of 0.7 percentage points in the unemployment rate of people in the 18-24 age bracket. The rate stood at 7.4 per cent, the lowest in the twelve months under review. Total unemployment dropped to 10,105, down by 121 from April, registering a rate of 3.7 per cent. Registered unemployment fell by 0.1 percentage points among both women and men, settling at a total rate of 3.6 among the former and 3.7 per cent among the latter. In May 2020, unemployment stood at just over 12,000, a rate of 4.5

per cent. The unemployment rate among women was 4.8 per cent and 4.2 per cent among men. Youth unemployment reached almost 3,200, equivalent to 10.9 per cent.

INDUSTRIAL PRICES UP BY A TENTH IN FOUR YEARS

The industrial producer price index rose to its highest point in May 2021, an increase of 9.92 per cent from the same month in 2017. Figures by the National Statistics Office shows a total rise of 1.73 per cent year-onyear, with gains across all industrial groupings except for the energy sector which remained stable.

Prices for the domestic market grew by 1.11 per cent. Intermediate goods and consumer goods increased by 4.33 per cent and 0.54 per cent, respectively. Capital goods, on the other hand, fell by 0.53 percent. For the non-domestic market, prices rose by 2.12 per cent in total, as all groupings registered increases.

Compared with April 2021, indices grew by 0.55 per cent, with the biggest increase of 1.35 per cent observed in intermediate goods. Capital goods recorded a decrease of 0.04 per cent while non-durable consumer goods rose by 0.02 per cent. There was no change in either durable consumer goods or the energy sector.

PUBLIC DEBT SOARS IN FIRST QUARTER

Total government debt grew to €7,478.2 million between January and March, up from €6,958.5 million in the preceding quarter. Figures by the National Statistics Office show an increase of €1.544.8 million compared with the same quarter in 2020.

Central government debt made €7,474.8 million, a rise of €1,544.6 million from a year before. Short-term securities grew by two-thirds from the start of 2020, jumping to €710.3 million in the first quarter this year. Long-term securities registered an increase of 19.5 per cent reaching €5,629.2 million in 2021.

Currency and deposits stood at €469.2 million, up by €90.7 million in a year. This includes the euro coins issued in the name of the Treasury, considered a liability of Central Government, and the 62+ Malta Government Savings Bond, the latter amounting to €379.5 million.

HOUSE PRICES DROP AT THE START OF THE YEAR

The House Price Index fell by 1.6 per cent between January and March this year compared to the preceding quarter. Data by Eurostat shows that Malta was one of only three EU members to register a decrease in house prices over this period, along with Cyprus (-5.8%) and Slovakia (-1.2%).

On average, prices rose by 1.7 per cent in the EU, led by increases in Estonia (+6.6%), Denmark (+5.8%) and Lithuania (+5.0%). Compared with the first quarter of 2020, the Index in Malta grew by 4.7 per cent, below the 6.1 per cent average across the EU. Luxembourg recorded the highest rise, ending the quarter at 17.0 per cent, ahead of Denmark (+15.3%) and Lithuania (+12.0%).

Cyprus was the only EU state to experience a drop year-on-year, closing the quarter 5.8 per cent below the 2020 Index.