Malta Economic Outlook
September 1, 2020Recently released national accounts data revealed that the economy was pummeled in the second quarter by the Covid-19 fallout, with GDP contracting at a record-breaking 16.2% year-on-year pace (Q1: +1.4% yoy) on suppressed domestic and foreign demand. Both fixed investment and private consumption were decimated as containment measures shut down activity, while exports collapsed amid travel restrictions and the vital tourism industry coming to a halt. Turning to Q3, although economic sentiment continued to improve in both July and August, primarily in the industrial and services sectors, consumers turned more pessimistic in August amid the reintroduction of some restrictions that same month due to a rise in coronavirus infections—hinting at a fragile recovery going forward.
Malta Economic GrowthThe blow dealt by the pandemic will plunge the economy into a deep recession this year. Private consumption will suffer amid higher unemployment, while exports will reel as the crucial tourism industry, whose revenues account for nearly a fifth of GDP, gets hammered. Strong fiscal support, however, should help cushion the downturn somewhat. FocusEconomics panelists see GDP contracting 6.1% in 2020, which is down 0.1 percentage points from last month’s forecast, before expanding 6.3% 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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