The latest business dialogue held between the Central Bank of Malta and non-financial corporations shows that in the third quarter of 2025, overall business conditions improved but with a somewhat uneven performance across sectors.
At 27% the economy-wide net share of respondents reporting an expansion stood below that in the last three years but improved slightly from 22% in the previous survey round.
Among all sectors, service-oriented firms were the most likely to report an expansion in activity. On balance, conditions were also positive in the manufacturing sector, and in the wholesale and retail sector. On the other hand, the construction and real estate sector reported overall negative conditions.
Near-term expectations for business activity were also positive, with a net 27% of firms anticipating an improvement. The wholesale and retail sector reported the most favourable outlook, followed by service providers. Businesses in the manufacturing sector maintain a cautiously optimistic outlook, while in the construction and real estate sector expectations are negative on balance, though the absolute majority of firms reported unchanged conditions.
Cost pressures were reported slightly less often than in previous rounds, although in most sectors increases were reported by around two-thirds of firms.
The net share of firms intending to increase investment increased, driven by capital expenditure, expansions and refurbishments.
Firms’ employment plans also indicate an increased pace of job creation. Nonetheless, attracting and retaining skilled workers remains a pressing issue.
This publication also incorporates a box focusing on persistent labour shortages and workforce strategies to address them.
The full publication is available here. The Business Dialogue survey can also be accessed in an interactive way through its dedicated dashboard.