USA

Year to Date (YTD)

Commentary: The Federal Reserve decided to maintain interest rates as recent data indicated that the US economy continued its positive trend with strong employment figures but also higher inflation. Specifically, January's non-farm payrolls reported that the US economy added 143,000 jobs, reducing the unemployment rate to 4%. Federal Reserve Chair Jerome Powell emphasized that the central bank is in no rush to alter its policy stance, given the current strength of the economy. Equity markets continued their positive trend, although the potential for additional tariffs imposed by the Trump administration is contributing to market volatility.

Europe & UK

Year to Date (YTD)

Commentary: The recent European economic figures have highlighted the challenges faced by the bloc’s largest economies, with the European Union projected to grow by only 0.9% in 2024. The unemployment rate has also increased to 6.3% in Euro area countries. These developments, alongside political concerns, prompted the European Central Bank (ECB) to lower interest rates during its January meeting. Germany is scheduled to hold elections on February 23rd, which could influence the political landscape within the EU and globally. Despite the disappointing economic indicators, European markets experienced a robust start to 2025, with the Eurostoxx 50 index up by more than 12% YTD.

Malta

Year to Date (YTD)

Commentary: Throughout 2024, the Maltese economy demonstrated robust growth, positioning itself as the country with the highest economic growth in the EU. The European Commission projects continued positive economic performance for Malta, with an updated growth rate forecast of 4.3% in 2025. This growth is anticipated to be largely driven by domestic demand and net export contributions. Furthermore, another prosperous year is expected for the tourism sector, with unemployment rates remaining at historically low levels. The MALTEX is now trading positively, and company earnings results are expected to be released in the coming weeks.