USA

Year to Date (YTD)

Commentary: The latest US economic data was positive, with the US reporting a GDP increase at an annual rate of 2.8% in Q3. The US annual inflation rate notched up to 2.6%, in line with expectations. Due to major storms and strikes, the US nonfarm payroll data suffered and reported only an addition of 12,000 jobs in its latest numbers. The FED reduced interest rates by another 25 basis points. Through November, we have also seen the re-election of Donald Trump as President. Equity markets were very bullish with this outcome and maintained their positive performance with the S&P500 now up by 23.7% and the tech-focused NASDAQ up by almost 26% YTD.

Europe & UK

Year to Date (YTD)

Commentary: The latest European economic numbers maintained their negative sentiment, with the bloc’s largest economies facing significant struggles in a bid to revive their economic growth. The latest numbers also show how the bloc saw inflation increase to 2.0%, with increases seen in almost all countries. Faltering economic growth may see the inflation rate stabilize. Growth forecasts for euro-area economies are pointing towards muted growth rates in the larger economies. The ECB may cut rates by another 25 basis points throughout the next December meeting as multiple governors call on for swifter rate cuts. European markets generally saw declines in November, with the Eurostoxx 50 now up by just 4.8% YTD.

Malta

Year to Date (YTD)

Commentary: The latest report by the European Commission noted how the Maltese economy continues to show robust growth, driven by strong domestic demand and export performance. Tourism remains on the rise, as high employment levels and recovering real wages support consumer spending. Following a 5.0% GDP growth in 2024, the economy is projected to grow at 4.3% in both 2025 and 2026. The government deficit is expected to decrease to 4.0% of GDP in 2024, with further reductions anticipated in 2025 and 2026, though it is projected to remain above 3% throughout the forecast period. The MALTEX traded sideways as Maltese-listed companies kept reporting generally positive earnings.