USA

Year to Date (YTD)

Commentary: The U.S. economy maintained its positive streak, with the economy growing at the fastest pace in the last two years. The latest numbers indicated an annualized growth rate of 4.3% as consumer spending solidified and exports increased. Notwithstanding, the labour market remains more of a concern as job creation remains weak. The unemployment rate remained constant at 4.4%. Annual inflation rate closed at 2.7%. This figure remains concerning largely due to elevated food prices. The monetary policy is largely expected to remain constant as President Trump keeps pushing for a more dovish FED. Equity markets have opened the year largely positive amid heightened geopolitical tensions. The S&P500 and NASDAQ are up around 1% as of mid-January.

Europe & UK

Year to Date (YTD)

Commentary: The euro area economy has maintained its weak growth streak with mixed performances across different economies. Germany, France and Italy reported weak economic growth, with Spain outperforming its peers. Economic growth was maintained by services and household spending, while manufacturing activity remained weak. Inflation eased to about 2 % in December, aligning with the ECB’s medium-term target, even as core price pressures remain moderate. The European Central Bank kept its key rates on hold at around 2%, underscoring a cautious, data-dependent stance amid mixed signals on price pressures. The latest unemployment number in the euro area was at 6.3%, broadly stable. Investor sentiment in early January improved, suggesting slightly stronger economic expectations. Financial markets have reacted positively, with the Eurostoxx 50 up by 4.1% in the initial two weeks. 

Malta

Year to Date (YTD)

Commentary: According to the latest report issued by the Central Bank of Malta, the country is projected to continue experiencing consistent economic growth of around the 3.7%. Growth throughout the forecast horizon is anticipated to be led by robust private consumption, with investment continuing to expand as well. Net exports are expected to provide a positive boost to GDP, particularly thanks to services trade, but their overall contribution will remain much more modest than that of domestic demand. Government debt is projected to remain around 47% of GDP as deficits are expected to narrow further. Illiquidity in the local equity market remains a concern as most listed companies maintain their positive performances in their financial statements. The MALTEX is up by 0.9% YTD.