Issue link: https://maltatoday.uberflip.com/i/823773
52 Events maltatoday, SUNDAY, 14 MAY 2017 Central Bank of Malta quarterly review – second issue 2017 2017, which analyses economic and financial developments in Malta and abroad during the fourth quarter of 2016. The review also includes an arti- cle on a Dynamic Stochastic Gen- eral Equilibrium (DSGE) model for the Maltese economy. Another article updates a 2015 study by the Bank on linkages between differ- ent industries. This edition also presents a comparison of the lat- est Household Finance and Con- sumption Survey results for Malta with those of other EU participat- ing countries. During the last quarter of 2016, real gross domestic product (GDP) in Malta grew by 5.1% year on year. This rate of expansion was three times that registered for the euro area as a whole. Positive labour market developments continued, as employment grew further and unemployment continued to de- cline. The annual rate of inflation, measured by the Harmonised In- dex of Consumer Prices (HICP) rose marginally over the quarter, standing at 1.0% in December. Inflation in Malta remained low from a historical perspective and for the first time in over two years, the December figure was also be- low that registered in the euro area. Monetary dynamics remained robust during the fourth quarter of 2016. Residents' deposits with monetary financial institutions operating in Malta continued to expand in annual terms, reflecting strong growth in overnight depos- its. The annual rate of change of credit to residents of Malta accel- erated, driven by faster growth in credit to residents outside the gen- eral government sector. With regard to fiscal develop- ments, in the last quarter of the year, the general government sur- plus increased when compared with the corresponding period a year earlier, as expenditure fell faster than revenue. When meas- ured as a four-quarter moving sum, the surplus was equivalent to 1.0% of GDP, up from 0.8% in the third quarter of 2016. Gen- eral government debt as a share of GDP stood at 58.3% at the end of December, down from 59.7% three months earlier. The review also presents an overview of the monetary policy decisions taken by the governing council of the European Central Bank (ECB), which were motivat- ed by continued economic growth and moderate price pressures. The governing council kept the key interest rates unchanged during the last three months of the year and extended its asset purchases programme (APP) until at least the end of 2017. The ECB also an- nounced further changes to the parameters of the APP, with a view to ensure its smooth operation. The second issue of the quarterly review for 2017 is available on the website of the Central Bank of Malta at www.centralbankmalta. org. APS Funds SICAV – Nine years of positive performance During its 9th Annual General Meeting APS Funds SICAV plc announced that once again both of its funds managed to register further significant growth in 2016. This was achieved despite volatile inter- national markets, ref lecting an uncertain global outlook. The Maltese market performed relatively well, but suffered higher volatility in the lo- cal fixed income securities during the sec- ond half of the year. The APS Income Fund still achieved very positive results. In 2016, the accumulator shares in this fund regis- tered an increase in value of 5.21%. From its launch in 2008 until the end of 2016, the fund registered an annualised return of 6.46%, reaching a price of €172.3487. It still maintained its status as the best per- forming local fund that invests mainly in Maltese securities for this period. The second fund, namely the APS Regu- lar Income Ethical Fund, offers the possi- bility of generating returns whilst adher- ing to ethical values. In 2016, the Class A accumulator shares of this fund regis- tered an increase in value of 4.39%. From its launch in July 2012 until the end of 2016, this second fund registered an an- nualised return of 6.64%, reaching a price of €1.3297. Around 4,000 investors have entrusted APS Funds SICAV with more than €108 million invested in both funds. During the first quarter of 2017, the company held two Extraordinary General Meetings and obtained the licence to oper- ate as a UCITS Fund. This provides more security and protection to shareholders. APS Funds SICAV plc will continue to adopt a successful prudent approach to- wards investment in the coming quarters. Further information may be obtained at www.apsbank.com.mt/apsfunds.