Signs of a slowing-down of economic growth were confirmed in the latest issue of the Economic Update, issued by the Central Bank of Malta on Wednesday.
It reported that in August, the bank’s Business Conditions Index (BCI) fell slightly over the previous month, whilst continuing to indicate above-average conditions. Higher sentiment in the services sector was offset by lower confidence in the construction, industry and retail sectors. Economic sentiment amongst consumers remained broadly stable at a high level.
In July, tourism activity grew further on the previous year. In contrast, industrial production and retail trade contracted.
Labour market conditions remained favourable, amid a declining number of registered unemployed and a low rate of unemployment.
The annual rate of inflation based on the Harmonised Index of Consumer Prices (HICP) rose to 2.1% in July.
The annual rate of change of Maltese residents’ deposits and the annual growth in credit to residents decelerated to 3.5% and 2.5%, respectively.
The cash-based Consolidated Fund recorded a surplus compared with a deficit recorded a year earlier.
The real GDP growth in the second quarter dropped from 6.9% to 5.9%.
The Economic Update is available on the website of the Central Bank of Malta www.centralbankmalta.org.
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