Positive Outlook for Malta’s Economy Backed by Investment and Private ConsumptionMEDIA ROOM
The European Commission is expecting a slow-down in Malta’s economic growth next year, nonetheless, Malta’s economy will still continue to experience a robust growth. According to the Spring Forecast 2016, the Maltese economy will continue to be sustained by investment and household consumption. These are the most essential elements of sustainable growth.
The report also acknowledges that the government’s decision to invest in healthcare and education will also boost investment in Malta over the years. Economic activity is expected to increase through job creation and real wages as these factors contribute to higher household consumption. In 2015, this has already been experienced due to lower electricity tariffs, lower unemployment rates and a rise in wage growth, all leading to a much higher consumer confidence. The inflation rate is expected to remain close to the target set by the ECB at 2.2%.
Fiscally, a 0.5% reduction in the deficit-to-GDP ratio in 2015, brought deficit down to 1.5%. This is expected to continue declining to 0.9% and 0.8% in 2016 and 2017 respectively. On a similar note, debt-to-GDP ratio is expected to decrease to 60.9% of GDP in 2016 and 58.3% by 2017.
According to Finance Minister Edward Scicluna, the report confirms that Malta is on the right path towards achieving sustainable growth, both economically and from a public finance perspective.