Malta’s economy: looking ahead - JP Fabri

Last week the European Commission issued its Spring Forecast for 2019. Malta continues to be one of the top performing EU Member States on a number of key economic indicators and its overall performance is definitely robust.

However, this should not translate into complacency especially since a number of risks and challenges can be identified.

Although global economic growth is expected to remain moderate at a rate close to four per cent, reflecting growth in China and the US, Europe’s economic recovery is expected to weaken. Growth is forecast to fall below two per cent on account of country and sector specific conditions, particularly in the euro area. Risks remain on the downside primarily due to global trade tensions that might impinge on growth.

In 2018, Malta was the fastest growing EU Member State with a GDP growth rate of 6.6 per cent compared to the EU average of two per cent. Domestic consumption and demand were particularly strong reflecting the increase in employment and the positive effect this has on income and spending in the economy. Exports were also strong, particularly in the services sector.

Malta continues to consolidate its profile as a service-based economy.