Malta Economic Outlook

December 20, 2019

Annual economic growth slowed to a near seven-year low in the third quarter, dropping to 3.4% from 4.9% in Q2. Both private and government consumption decelerated, while fixed investment growth remained close to zero, likely on Brexit uncertainty and a moderating external backdrop. That said, economic activity was still robust compared to regional peers. Moving to the fourth quarter, available data is mixed. The trade deficit widened in October, as merchandise exports dipped year-on-year, and industrial production growth slowed. Tourism arrivals, however, increased in the same month, while a low unemployment rate and an uptick in consumer sentiment bode well for private consumption. Meanwhile, in other news, Prime Minister Joseph Muscat announced his intention to resign early next year following rising public anger over the death of journalist Daphne Caruana Galizia. The economy should not be significantly affected.

Malta Economic Growth

Growth is seen ebbing in 2020 owing to weaker private consumption growth, while fixed investment will also slow due to a moderation in residential construction investment. However, the economy will still expand far above the Eurozone average. Downside risks stem from increased political instability due to ongoing corruption allegations, and Brexit uncertainty, which could hit British tourist arrivals. FocusEconomics panelists estimate growth of 4.0% in 2020, which is down 0.4 percentage points from last month’s forecast, and 3.8% in 2021.

Malta Economy Data

	2014	2015	2016	2017	2018
Population (million)	0.4	0.4	0.4	0.5	0.5
GDP per capita (USD)	23,924	26,387	24,500	25,489	27,739
GDP per capita (EUR)	18,071	19,830	21,948	22,982	24,576
GDP (USD bn)	10.1	11.3	10.8	11.5	12.8
GDP (EUR bn)	7.6	8.5	9.7	10.3	11.3
Economic Growth (GDP, annual variation in %)	4.6	8.7	10.8	5.6	6.8
Consumption (annual variation in %)	2.0	2.5	5.1	2.4	3.5
Investment (annual variation in %)	1.3	7.0	55.7	-0.3	-7.5
Exports (G&S, annual variation in %)	0.9	4.1	15.5	4.5	5.4
Imports (G&S, annual variation in %)	0.0	0.2	18.1	1.6	0.4
Industrial Production (annual variation in %)	-4.7	-5.7	-0.2	-6.9	8.3
Unemployment Rate	6.1	5.7	5.4	4.7	4.0
Fiscal Balance (% of GDP)	-2.4	-1.7	-1.0	0.9	3.4
Public Debt (% of GDP)	68.4	63.4	57.9	55.5	50.2
Inflation Rate (HICP, annual variation in %, eop)	1.0	0.4	1.2	1.0	1.3
Inflation Rate (HICP, annual variation in %)	1.0	0.8	1.2	0.9	1.3
Inflation (PPI, annual variation in %)	-	-	-	-	-
Policy Interest Rate (%)	-	-	-	-	-
Exchange Rate (vs USD)	-	-	-	-	-
Exchange Rate (vs USD, aop)	-	-	-	-	-
Current Account (% of GDP)	2.0	3.1	3.6	6.3	12.3
Current Account Balance (EUR bn)	0.2	0.3	0.4	0.7	1.4
Trade Balance (EUR billion)	-1.1	-1.2	-2.0	-2.0	-1.5

Sample Report

5 years of Malta economic forecasts for more than 30 economic indicators.

Download

Sample Report

Get a sample report showing our regional, country and commodities data and analysis.

Download

Malta Facts

	Value	Change	Date
Bond Yield	0.43	3.09 %	Dec 30
Exchange Rate	1.12	0.65 %	Dec 31

Request a Trial

Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.

Malta Economic Outlook

Malta Economic Growth

Malta Economy Data

Sample Report

Sample Report

Malta Facts

Request a Trial

Search form

Sign up for our newsletter