Malta's Economic Sentiment Hits All-Time High

This article forms part of a monthly feature by Business News Malta, drawing on the Central Bank of Malta’s (CBM) monthly Economic Update to track the macro-economic and monetary developments shaping the Maltese economy. Each month, we go through the report and highlight the trends underpinning the country's economic story. 

Malta’s economy closed 2025 on an upbeat note, with the CBM’s latest Economic Update revealing that business confidence and economic sentiment ended the year at historically strong levels. 

The European Commission’s Economic Sentiment Indicator for Malta rose in December from the previous month to reach the highest level ever recorded, a striking milestone that underscores the resilience of the Maltese economy at a time of wider uncertainty across Europe. 

The CBM’s own Business Conditions Index reinforced that positive reading, showing that annual growth in business activity edged up slightly from November and remained above its historical average.  

The property market showed encouraging signs, with permits for residential buildings rising from their year-ago level in November. In December, both the number of residential promise-of-sale agreements and final deeds of sale increased on a year earlier, pointing to sustained activity in the housing sector. 

Inflation continued to ease, with the annual Harmonised Index of Consumer Prices (HICP) rate falling to 2.4 per cent in December from 2.5 per cent the previous month. Core inflation excluding food and energy stood at 2.3 per cent, in line with the euro area average. 

Public finances also improved, with the Consolidated Fund recording a smaller deficit in November compared with a year earlier, driven by higher government revenue and lower government expenditure. 

The labour market remained robust, with unemployment standing at just 3.1 per cent - low by any historical measure. 

The full Economic Update is available here. It’s a monthly assessment of the latest macro-economic and monetary developments in Malta, using official statistics as well as supplementary indicators developed by CBM staff. The Update was launched in 2015 and replaced the Monetary Statistical Release.