USA

Year to Date (YTD)

Commentary: The U.S. economy has shown multiple signs of cooling growth. The labour market added only 22,000 jobs in the August nonfarm payrolls report, with several downward revisions in previous labour market statistics. Notably, the Labor Department removed 911,000 jobs from the books that were previously reported as created between March 2024 and March 2025. The unemployment rate ticked up to 4.3%. Wage growth was moderate, with U.S. workers seeing average hourly earnings rise by 3.7% year-over-year, slightly below the expected 3.8%. The latest inflation data shows headline inflation currently at 2.9%. Despite inflation remaining above the Fed’s 2% target, the Federal Reserve is still likely to proceed with an initial rate cut at its September meeting. Markets have largely maintained their positive momentum, with strong year-to-date gains: the S&P 500 is up 12.5%, while the NASDAQ has risen 15.7%.

Europe & UK

Year to Date (YTD)

Commentary: The euro area economy has shown steady resilience in the face of ongoing global headwinds. Growth momentum, however, softened in the second quarter; real GDP expanded by only 0.1% quarter-on-quarter. On an annual basis, output increased marginally, reflecting a mixed performance across member states. At its September meeting, the European Central Bank opted to keep the deposit facility rate unchanged at 2%, noting that headline inflation has aligned with its 2% medium-term target and that the overall outlook remains broadly balanced. The Eurozone economy near-term growth prospects remain subdued as weak global demand and heightened uncertainty continue to constrain exports and investment. Real GDP growth is projected at 0.8% in 2026, falling short of consensus expectations. The Eurostoxx 50 maintained its positive streak and is up by 11% YTD.

Malta

Year to Date (YTD)

Commentary: According to the latest report from the National Statistics Office (NSO), the Maltese economy grew by 2.7% in volume terms in the second quarter of 2025. Household consumption expenditure increased by 4.3%, with real GDP growth continuing to significantly exceed the average rate observed across the euro area. The debt-to-GDP ratio maintained its downward trajectory and is now projected to fall to 47% in 2025. The unemployment rate remained historically low. The MALTEX index remained flat despite strong performance from local companies. Malta International Airport again reported record numbers, while APS Bank announced a €45 million rights issue to strengthen its capital base.