Economic update 11/2016

Abstract

Overall economic sentiment rose marginally in November, reflecting an improvement in sentiment in construction, services and industry. Hard data show that, in September, industrial production went up marginally. Activity in tourism and retail sales continued to increase through October. The labour market performed solidly, with the annual growth rate of the gainfully occupied population rising to 4.7% in May. Registered unemployment fell further in October. Price pressures remained moderate. The annual rate of inflation based on the Harmonised Index of Consumer Prices (HICP) and the Retail Price Index (RPI) stood at 0.5% and 0.4%, respectively, in October. Meanwhile, industrial producer prices declined slightly on an annual basis. Maltese residents’ deposits expanded at a slower rate in October, while the annual rate of growth of credit to residents rose slightly to 2.6%. As regards fiscal developments, the deficit on the cashbased Consolidated Fund narrowed in the first ten months of the year, mainly due to an increase in tax revenue.