Malta Economic Outlook
May 31, 2022The available data paints a mixed economic picture for Q1. Industrial production contracted, suggesting downbeat private sector activity. Meanwhile, consumer sentiment plunged and inflation soared, pointing to depressed household spending. On the other hand, the unemployment rate continued to fall, economic sentiment strengthened and tourism continued to recover. Moreover, government finance data for the quarter shows that the consolidated fund deficit shrank compared to the same period of the previous year, mainly due to rising revenue from income and value added taxes, as well as an increase in social security contributions. Moving into Q2, the labor market remained relatively tight in April, while in the same month consumer confidence rebounded. However, inflation continued to spike, while economic sentiment began to weaken.
Malta Economic GrowthGDP should expand at a solid rate this year, underpinned by Next Generation EU fund inflows, a strong labor market and a tourism sector revitalized by reduced Covid-19 restrictions in the EU. That said, growth will be constrained by a high base effect. However, protracted global supply chain issues and the war in Ukraine pose downside risks. FocusEconomics panelists see GDP expanding 4.2% in 2022, which is down 0.4 percentage points from last month’s forecast, and 3.3% 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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