The effects of the recovery in private-sector employment and lower inflation have not yet fully fed through to household consumption, while households’ financial savings increased.
Interest rates continued to fall in 2025, supporting a turnaround in residential investment and an increase in new lending to businesses in the second half of the year. Financial performance improved in 2025 for a majority of sectors, including services, which account for a large share of the territory’s economy.
However, an acceleration in the recovery in 2026 is threatened by the consequences of the conflict in the Middle East for hydrocarbon prices and by constrained public finance prospects.