The Central Bank of Malta has published the first issue of its Quarterly Review for 2017 which analyses economic and financial developments in Malta and abroad during the third quarter of 2016.
Over the review period, the Maltese economy was one of the fastest growing countries in the euro area, with real GDP rising by three per cent on an annual basis. This rate of growth was almost double the rate observed in the euro area as a whole.
GDP rose by 3% on an annual basis, almost double the rate in the euro area
Labour market conditions remained favourable and inflation, measured by the Harmonised Index of Consumer Prices (HICP), remained low from a historical perspective, standing at 0.9 per cent in September.
Residents’ deposits continued to grow at a fast pace in annual terms. At the same time, the low level of interest rates contributed to a further shift towards overnight deposits. Interest rates on deposits and loans to Maltese residents fell further during the third quarter, as did yields on Treasury bills and government bonds.
As regards fiscal developments in Malta, during the September quarter, the general government deficit narrowed compared to the same period of 2015.
When measured on a four-quarter moving sum basis, the balance showed a surplus equivalent to 0.6 per cent of GDP. The debt-to-GDP ratio reached a low of 60.4 per cent of GDP.