Strengthening the resilience of the vulnerable Maltese economy − Lino Briguglio

Within the EU, Malta is the most export-oriented country, with about 65 per cent its final sales being purchased by non-residents, and the remaining 35 per cent by residents. The islands are also highly dependent on imports, with about 55 per cent of final expenditure going on imported goods and services. The remaining 45 per cent of final expenditure goes on value added generated locally − the gross domestic product (GDP).

Even though Malta imports more than it adds, the GDP per capita of the islands is relatively high (ranking 12th among the EU countries). Interestingly, but not surprisingly, the two most trade-open countries in the EU are Luxembourg and Malta, the two smallest states in the Union.

Due to its high degree of trade openness, Malta is vulnerable to adverse external shocks. This stark reality was evidenced in 2020 and 2021, when due to a drop in exports, notably tourism, GDP in real terms declined by about eight per cent in 2020.

Another small state that is highly exposed to adverse external shocks is Singapore. It is even more trade-open than Malta. In 2020, Singapore also experienced a relatively high decline in its GDP. Overall, however, Singapore is a highly...