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5 NEWS 29.7.2021 IDEA Academy is organising a free webinar that explores ways of making the most out of the eco- nomic situation brought about by the Covid pandemic. e pandemic has caused disrup- tions to daily life, both socially as well as economically. Government restrictions aimed at containing the spread of the virus have led to a surge in unemployment, a decrease in consumption and, subsequently, a sharp drop in investment. is, in turn, led to a drop in the nation- al Gross Domestic Product (GDP). Nevertheless, some businesses have actively sought out oppor- tunities during this challenging period by investing in human and physical capital in preparation for future economic growth. Various governments have also used this economic shock to re- direct their focus from economic growth (measured using GDP), to sustainable economic develop- ment. In this webinar, economist Ayr- ton Zarb will be breaking down the impact of the pandemic on econo- mies, as well as going over the in- fluence that the pandemic has had on consumers, producers and gov- ernments alike. e webinar is ideal for anyone who is interested in understand- ing how the 'economy' works, its impact on our lives, and the con- sequences of our actions on eco- nomic wellbeing. e webinar, called 'Seize the Day: Opportunities and Challeng- es of a Covid Economy', will be de- livered on Tuesday, August 3rd, at 6pm. To register for this free webinar, please visit: https://bit.ly/idea-cov- ideconomy Free webinar on opportunities and challenges of a Covid economy THE Central Bank of Malta's Econom- ic Update for June says that in the same month, its Business Conditions In- dex continued to signal an expansion in economic activity, as the economy continued to recover from the very low levels observed in 2020. European Commission surveys show that sentiment eased somewhat, but remained well above its long-term av- erage and positive in all sectors, bar- ring the retail sector. e Bank's estimate of the COV- ID-19 Government Response Index – a composite indicator that summarises various containment, economic and health-related measures introduced in response to the pandemic – fell at the end of June from a month earlier but stood above that reported in the euro area. is decline mainly reflects the continued easing of restrictions. In May, industrial production grew at a slower annual rate compared with a month earlier, while growth in the vol- ume of retail trade accelerated in an- nual terms. e number of commercial and res- idential permits contracted in annual terms after increasing a month earlier. As regards residential property trans- actions, in June the number of final deeds and promise-of-sale agreements rose at a slower pace on an annual ba- sis. is increase reflects base effects from the declines experienced last year during the partial lockdown, as well as government schemes intended to sup- port the property market. In May, the number of registered un- employed persons fell compared with April and compared with a year earlier. e unemployment rate remained un- changed at 3.7% compared with April, and well below its historical average. e annual inflation rate based on the Harmonised Index of Consumer Prices (HICP) rose marginally to 0.2% in May, while that based on the Retail Price Index accelerated to 1.3%. e difference between the two measures of inflation reflects technical factors related to the revision of HICP weights in 2021. HICP inflation remained at 0.2% in June. e Economic Update also includes data on recourse to the moratorium on loan repayments offered by domestic credit institutions to residents of Malta in response to COVID-19. e value of household and corpo- rate loans subject to a moratorium at the end of May edged down further, to €151.2 million, equivalent to 1.3% of related outstanding loans and around 8.0% of the extent of the moratorium at its peak in July 2020. is suggests a recovery in income flows and, for some, the expiration of the moratoria period. By the end of May 2021, 601 new facilities for work- ing capital and loan repayment pur- poses had been granted to businesses impacted by the pandemic under the Malta Development Bank COVID-19 Guarantee Scheme, corresponding to total sanctioned amounts of €451.3 million, or 58.0% of the scheme's target size. Latest Central Bank Economic Update points to economic recovery and growth

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