9  For example, around 18% of extracted energy products (gas and coal) and 9% of oil products consumed in the EU are imported from Russia, compared with just 3% and 2.5%, respectively, of those consumed in Spain. 10 See J. Quintana (2022). “Economic consequences of a hypothetical suspension of Russia-EU trade”, Analytical Articles, Economic Bulletin 2/2022, Banco de España. 4  The decline in activity is also reflected in the adverse performance of international trade, which began to decelerate in spring. In addition, although suppliers’ delivery times and bottlenecks have improved, the latter’s effects remain significant. In parallel, most commodity prices have tended to moderate since mid-year in view of the prospects of a global economic slowdown, among other factors. Overall, the financial markets consider that the likelihood of a global recession has risen significantly. In particular, there is concern about the possible effects of the current simultaneous tightening of monetary policy in numerous geographical areas. The individual decisions of each central bank are fully justified because inflationary pressures are very high and persistent in each of their jurisdictions. However, this raises the question of whether, in such an interconnected world, simultaneous tightening could lead to an excessively restrictive monetary policy stance worldwide, especially for emerging market economies.11 2. Recent developments and outlook In H1 the economy has benefited from the easing of COVID-19 restrictions The aforementioned recessionary forces are not yet reflected in the euro area’s economic data for the first half of the year.

The rankings are based on nominations submitted by large and small communities from around the world that take into account indicators developed by the forum. The award goes to communities or regions with a documented strategy for creating a local prosperity and inclusion using broadband and information technology to attract leading-edge businesses, stimulate job creation, build skills, generate economic growth, and improve the delivery of government services. 5  European Commission. 2007. Report from the Commission - Convergence Report 2007 on Malta, COM(2007) 258 final, p.7. BIS Review 14/2008  3  generate more value. The ongoing improvement in the quality of the infrastructure and other facilities available to investors has induced many foreign investors to locate, or expand existing operations, in Malta and thus take advantage of market access and cost-saving opportunities created by Malta’s status, first as an EU Member State and eventually also as a euro area member. This is reflected in the FDI figures when expressed in terms of additions to the capital stock in any one year. Since 2003, for example, the ratio of FDI inflows to gross capital formation was on average 83%, compared to 14% in the EU25. In manufacturing alone, since the first year of EU membership a total of 127 new projects or expansions with foreign participation have been approved, with an estimated potential value equivalent to 1% of nominal GDP. 6 The role of the Central Bank of Malta The Central Bank of Malta has been present at every stage of Malta’s journey to the euro.