USA

Year to Date (YTD)

Commentary: The US economic data maintained its positive march with the US economy projected to have grown by 2.7% in 2024. Employment numbers were also very positive, with the US economy reporting an increase of 256,000 jobs in December. Unemployment notched down to 4.1%. Notwithstanding these numbers, the US annual inflation rate notched up to 2.7%. These factors will make it harder for the FED to cut interest rates for the time being. January will also see the inauguration of Donald Trump as US President. Although most financial analysts expect a positive year, volatility is largely expected. Equity markets opened the year down with all indices down.

Europe & UK

Year to Date (YTD)

Commentary: The latest European economic numbers highlighted how the bloc’s largest economies keep struggling to revive their economic growth. The latest published numbers also showed how the Eurozone saw inflation increase steadily to 2.4%. This was the third consecutive increase and the highest rate since last July. Such increase coupled with faltering economic growth may see the ECB take a cautionary position on its interest rates. Growth forecasts for euro-area economies are pointing towards weak numbers with Germany particularly in a struggling position. European markets generally opened flat YTD.

Malta

Year to Date (YTD)

Commentary: The latest release by the Central Bank of Malta noted how the Maltese economy continues to show robust growth. Positive economic growth is also projected for the Maltese economy with the Central Bank predicting a growth of 3.9% in 2025. This is expected to be driven largely by domestic demand and the contribution of net exports. Another positive year is expected in the tourism sector with unemployment rates largely expected to keep hovering around the low level of 3%. The Government’s deficit is also expected to keep maintaining its downward trend. The MALTEX traded sideways in the first 2 weeks of 2025.