Malta expected to record the highest economic growth rates in the EU for the third consecutive year

The Ministry for Finance said in a statement it welcomes the 2019 Autumn Economic Forecast published by the European Commission which expects the Maltese economy to record the highest GDP growth rates in the EU for both 2020 and 2021.

The EC expects Malta’s GDP growth to amount to 4.2% in 2020 and 3.8% in 2021. Growth is expected to be fuelled by private consumption, which is forecasted to remain above its historical average due to favourable labour market conditions and large-scale projects planned in the aviation, health and tourism sectors. Public investment is also expected to remain above long-term averages.

The Autumn Economic Forecast notes that the fast pace of economic growth in Malta has been coupled with strong employment growth and a record-low unemployment rate. Nevertheless, inflation is expected to remain below the 2% threshold for both 2020 and 2021.

Government is expected to continue to register a surplus in the coming years while the debt ratio is expected to remain on a downward path, declining to below 40% by the end of 2021.

On the external side, Malta is expected to record current account surpluses for both 2020 and 2021, despite a weaker external environment.

“This is the third consecutive time in which Malta is forecasted to record the highest economic growth rates from all the EU 28 member states, for both the one- and two-year ahead of the EC autumn forecasts. The implication for jobs and government revenues is clearly positive thus giving the government the ability to implement its electoral programme as intended,” commented the Minister for Finance Edward Scicluna.