Malta Economic Outlook
June 2, 2020The impact of the coronavirus pandemic severely hampered economic activity in the first quarter, with GDP growth slowing to 0.5% year-on-year (Q4 2019: +4.8% yoy), an over one-decade low. The deceleration was largely driven by falling exports as the important tourism sector was hammered by lockdowns abroad, while social distancing measures at home crippled private consumption. A pick-up in public expenditure growth cushioned the overall downturn, however. Turning to the second quarter, the scenario has seemingly deteriorated further as containment measures continued to depress domestic demand, while travel restriction has halted tourism. However, since 4 May restrictions are gradually being lifted to reboot the economy, allowing some businesses and shops to reopen as of 22 May.
Malta Economic GrowthGDP is expected to shrink this year as Covid-19 and its associated containment measures deals a heavy blow to the economy. Household spending and fixed investment are set to fall markedly, while global lockdowns will depress the tourism sector, which accounts for over 17% of GDP. Fiscal and monetary stimulus should provide some support, however. FocusEconomics panelists estimate GDP to contract 4.0% in 2020, which is down 0.5 percentage points from last month’s forecast, before expanding 7.3% in 2021.
Malta Economy Data
5 years of Malta economic forecasts for more than 30 economic indicators.
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