Malta’s burgeoning economic prosperity is a reflection of Maltese confidence, its success as a participant in the global economy and its ability to adapt to an ever changing economic arena. Growth and financial stability enable the Maltese people to enjoy an increasingly good quality of life. Whilst the government focuses on bolstering the middle class, the main pillar of society, all individuals are benefiting from the economic successes.
The 2019 budget showcased inclusive growth as its main theme for 2020, both prioritizing and celebrating its importance. As the 2019 Budget details were revealed on the 14th of October by the Hon. Edward Scicluna Minister for Finance, Malta’s economy looked set to grow from strength to strength in 2020.
Growth is a key factor for Malta and for 2020, the government is predicting a another surplus for the 5th year running this is supported by budget figures which clearly indicate significant economic expansion. This follows a trend set in 2017 where a surplus of 2.4% of GDP exceeded the predictions of the 2018 budget.
Projections surrounding inflation for 2020 indicate a rate of 1.6%. Malta’s sustained and consistently positive fiscal policies resulted in a decline in the debt ratio in 2018. The burden of debt plummeted below the 60% target to 46%. Medium term projections suggest greater financial success in this area with debt dwindling to 33% of GDP by 2022. Additionally, public debt is also predicted to drop from its current 45.8% to 40.4% next year.
The flourishing economic growth in Malta is primarily driven by tourism, financial services and i-gaming with each contributing to the 4.7% growth during the first 6 months of 2019. These contributors are predicted to continue supporting the economy into the future. These forecasts also suggest that 90% of new employment will be generated in the private sector and, with conditions remaining as buoyant, employment is expected to increase by 4.1%.
Predictions for unemployment rates in 2020 show a desirable and stable rate of 3.5% and reflect the strong and expanding economy. Whilst slightly raised against the August 2019 rate of 3.3%, this figure evidences a dramatic decrease compared to the 6.2% unemployment rate in 2012. This steady fall in unemployment figures reflects economic stability. Indeed, Malta’s overall participation rate of 74.2% surpassed the EU average of 73.7% for the first time in 2018.
Year on year the Maltese economy proves to be one that investors can trust. Malta has pride and confidence in its financial and economic success and strives to attain ever better achievements. It is a country where one can enjoy a high standard of living and robust financial security.