Malta’s GDP is projected to 4.1% in 2016 and 3.7% for the following two years which places the Mediterranean island amongst the top rankers in the European Union.
The positive results were communicated by the European Commissioner earlier this week when he remarked that the strong labour fundamentals, low unemployment and job creation were some of the main factors for this positive outlook.
An overall look at the projected figures
In its autumn forecast, the EC mentioned various local and international elements which could impact the economy, such as a decline in British tourists’ arrivals, to the inflow of foreign workers, keeping wages stable albeit a significant demand for employees. Besides, numerous projects, such as activities in the transport sector, would keep domestic demand buoyant. The Commission also referred to various temporary costs, such as the lower capital injection into Air Malta and preparations for the upcoming EU presidency.
Apart from that, the economy will benefit from the positive financial impact of the citizenship and residence programmes, together with new excise duties, the concessions on stamp duty for business inheritance and the decrease in the needed amount to cover the government debt.