Malta's trade deficit narrowed sharply to EUR 157.3 million in January 2026, from EUR 322 million in the same month a year earlier. This marked the smallest trade gap since November 2024. Exports fell 0.5% year-on-year to EUR 378.2 million, dragged down by a drop in sales of fuels and lubricants (-42.1%) despite higher sales of industrial supplies (24.2%), capital goods and others (94.4%), and consumer goods (18.7%). Shipments to Turkey (-54.4%), the Netherlands (-0.9%), and France (-28.8%) saw notable declines. Meanwhile, imports fell at a much faster pace of 23.7% year-on-year to EUR 535.5 million, primarily weighed down by lower purchases across all categories, namely consumer goods (-11%), fuels and lubricants (-40%), capital goods and others (-14.3%), and industrial supplies (-21.1%). Arrivals from Italy (-40%), France (-55.2%), and Germany (-22.2%) recorded significant declines.