Economic update 2/2015

Abstract

Economic activity in Malta continued to expand robustly in the third quarter of 2014, with real gross domestic product (GDP) increasing by 3.8% on a year earlier, driven mainly by domestic demand. The available information for the final quarter of the year points to a subdued performance in manufacturing and continued growth in tourism. Growth in economic activity is being reflected in the labour market, with employment expanding and the unemployment rate declining. Price pressures remain contained, with the annual rate of inflation falling to 0.6% in November 2014. Maltese residents’ deposits continued to expand robustly in both October and November. Credit contracted further, though at a slower pace than in previous months. As regards fiscal developments, the deficit on the Consolidated Fund narrowed between January and November. On the external side, the surplus on the current account of the balance of payments increased during the third quarter the year.