Malta Economic Outlook
May 3, 2022After GDP growth cooled in Q4 2021 due to a weaker external sector, available data paints a mixed picture for Q1. A tighter labor market likely supported private consumption. Higher average economic sentiment in Q1 is expected to have buoyed private business activity. Inbound tourist numbers rose sharply in January and February in year-on-year terms. That said, the rate of tourist numbers growth in Q1 slowed from Q4’s blistering pace. Consumer confidence weakened sequentially and inflation accelerated, likely hitting private consumption. Meanwhile, industrial production remained subdued in January-February. Turning to Q2, a further loosening of restrictions from late March bodes well for activity. In politics, the Labor party won a third term in the general elections, signaling policy continuity. Reining in the EU’s highest fiscal deficit may require fiscal restraint.
Malta Economic GrowthThe economy should record a healthy pace of growth this year, although a less favorable base effect will keep it below last year’s rate. A solid labor market, a recovering tourism industry amid falling Covid-19 restrictions in the EU, and EU funds will spur economic growth. The shadow of the Russia-Ukraine war and prolonged global supply constraints pose downside risks. FocusEconomics panelists see GDP expanding 4.6% in 2022, which is down 0.2 percentage points from last month’s forecast, and 3.4% in 2023.
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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