Maltese residents’ bank deposits rose by 10.1% in September when compared to a year earlier, while growth in credit to residents stood at 2.6%, the Central Bank of Malta says in its latest Economic Update.

Although lower than the 11.4% observed in August, growth remains relatively strong from a historical perspective. This indicates an abundance of liquidity in the context of robust economic growth as well as a continued preference for holding liquid assets in an environment of low interest rates," the bank said.

The Economic Update is based on information available up to November 10. 

The Central Bank said that its Business Conditions Index (BCI) signalled a slight improvement in activity levels during October. Economic sentiment rose marginally, as improved confidence in the retail and construction sectors, and among consumers was offset by weaker confidence in services and industry sectors.

In September, both retail sales and tourism activity accelerated in annual terms. Industrial production also rose on a year earlier. Labour market conditions remained favourable. Employment continued to grow, while unemployment fell further.

Price pressures remained moderate, with the annual rate of inflation based on the Harmonised Index of Consumer Prices (HICP) unchanged at 1.2% in September. 

As regards fiscal developments, the cash-based Consolidated Fund showed a surplus in the first nine months of 2017.

See the Economic Update by clicking on the pdf below.