Malta Economic Outlook
December 20, 2019Annual 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 GrowthGrowth 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
5 years of Malta economic forecasts for more than 30 economic indicators.
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|Bond Yield||0.43||3.09 %||Dec 30|
|Exchange Rate||1.12||0.65 %||Dec 31|
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