‘We are in a fluid economic situation’ – Dr Stephanie Fabri
“Up to just a few weeks ago, we were discussing how the global economic recovery from Covid19 is likely to unfold. However, the Ukraine-Russia war has transformed and amplified the nature and extent of this recovery, bringing a new form of economic uncertainty”. Interviewed by Dayna Camilleri Clarke, leading economist Dr Stephanie Fabri discusses this still-unfolding event whose economic impact cannot yet be determined.
How will Malta handle the latest scenarios we are facing? Dr Fabri is quick to reply, “Malta’s economic recovery from Covid-19 will undoubtedly be affected by this new turn in events. Our smallness, openness to trade, and limited resources expose us to external shocks. Yet, one has to mention that despite our challenges, we have managed to rebound from every economic and financial crisis we have faced. In times of crisis, we are resilient and agile. We are indeed capable of weathering major unforeseen disruptions”.
Dr Fabri continued, “The Ukraine-Russia war has tested the global economies once again, and Malta’s economy is no exception. The already existing supply chain shortages as a result of Covid are now coupled with significant increases in the price of grains, energy, and commodities. These are expected to persist throughout the months to come”.
“The recovery had indeed started to gather momentum from the pandemic, with Malta expected to have the fastest economic growth rate in 2022 among EU members, yet, we need to keep in mind that the economy is still exposed to increasing threats due to the present economic and political instability. Tourism numbers and growth rates in most sectors were picking up, yet economic activity is still below pre-pandemic levels in most cases. The present war situation will, of course, make it even more challenging to achieve those results”.