Maltese residents’ deposits have risen by 11.4% when compared to a year ago,  while growth in credit to residents has accelerated to three per cent, the Central Bank of Malta said in its latest economic update today. 

The bank said that although the deposits growth rate was lower than the 13.4%
figure observed in July, growth remained '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, it said. 

On the other hand, the annual growth in credit to Maltese residents, at three per cent in August, showed an acceleration from two per cent a month earlier.  

"Credit to both general government and other residents grew at a faster pace. While growth in credit to general government was impacted by the timing of government debt issues and redemptions, growth in credit to residents was largely driven by loans."

In September, the Bank’s Business Conditions Index (BCI) signalled a slight
improvement in activity levels over the previous month. However, economic
sentiment fell marginally, as improved confidence in construction, services and
industry was offset by a decrease in confidence in the retail sector and among
consumers.

In August, retail sales accelerated in annual terms, while tourism activity rose further.

Industrial production also increased on a year earlier.

Labour market conditions remained favourable, with the number of registered
unemployed declining further on an annual basis, the bank said.

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

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

The Economic Update is available on the website of the Central Bank of Malta
www.centralbankmalta.org.

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