USA

Year to Date (YTD)

Commentary: The U.S. economy has lately shown signs of cooling, though overall activity remains relatively resilient. Consumer spending continues to support growth, but tighter financial conditions and elevated energy prices are weighing on sentiment. Labour market data surprised to the downside in February, with nonfarm payrolls falling by about 92,000 and the unemployment rate edging up to around 4.4%. Inflation remained broadly stable, with annual CPI holding near 2.4% easing goods prices offset persistent services inflation. Heightened volatility in the oil price is largely expected to increase inflation as the US ponders on its next moves in Iran. The Federal Reserve has so far maintained a cautious stance, keeping interest rates unchanged yet equity markets have seen increased volatility.  US equity markets are now all down YTD.

Europe & UK

Year to Date (YTD)

Commentary: The euro area economy remained subdued through early March, with Germany, France and Italy still experiencing modest growth while Spain continued to outperform the bloc. Activity remained supported mainly by services and household spending, while manufacturing conditions stayed weak amid soft external demand. Inflation edged slightly higher to around 1.9% in February. Core inflation also ticked up modestly, though overall price pressures remained close to the European Central Bank’s 2% target. Policymakers kept interest rates unchanged at a deposit rate of 2%, maintaining a cautious stance as geopolitical tensions and rising oil prices increased uncertainty about the inflation outlook. The Euro Stoxx 50 also turned negative after higher volatility year-to-date.

Malta

Year to Date (YTD)

Commentary: Malta’s economy remained on a steady footing, with growth expectations still close to 3.8–4.0% for 2026, supported by domestic demand, tourism, and services activity. Recent assessments continued to highlight Malta as one of the faster-growing economies in the EU. Inflation remained relatively contained at just above 2%, reflecting stable energy prices and easing food and services pressures. Labour market conditions stayed tight, with the NSO remarking that unemployment was at 3.4% in January. Fiscal indicators remained broadly stable, with public debt expected to remain near 47% of GDP as deficits gradually narrow. The MALTEX index is up 4.3% YTD.