Update: Watch: Government welcomes EC report forecasting a more moderate economic growth

Tista' taqra bil- Malti.

The European Commission (EC) said that Malta’s economic growth is expected to start slowing down. In its report the EC explained that inflation is expected to rise whilst the surplus is expected to trend downward. The report also concluded that that Malta will go through a more moderate economic growth rate.

Malta’s surplus to start decreasing – European Commission

In the Malta report, the EC said that the country’s economy exceeded forecasts for 2018. It also discusses how economic growth increased during the second half of the same calendar year following record private consumption rates that increased by 7.3% compared to the same period in the previous year (2017).

The EC report also concluded that notwithstanding the reduction of real-term investments during 2018, investments in 2019 are expected to increase once again with further investment in 2020. As an example the EC mentioned non-residential construction projects that are aimed for the health, transport and tourism sectors.

‘Maltese economy in surplus for the third year running’ – Scicluna

“The government surplus rises to €128M” – NSO

Unemployment is expected to stay under 4%

European Commission

The report also observed that Maltese activity rates are within the European median and are expected to decrease with the moderation of economic growth. However, unemployment rates are expected to remain under 4%. The report shows that the influx of foreign workers has helped to keep wages stable and such are expected to increase by 1.2% in 2020.

The Spring economic forecasts also indicate that the Gross Domestic Product (GDP) is expected to be 5.5% in 2019 and fall to 4.8% in 2020.

‘A confirmation that our economy will see the most growth in the EU’

In a press release the government said that the EC report is confirming once again that the Maltese economy will the one registering most growth in the EU.

Prime Minister Joseph Muscat stated that this report illustrates that what is being done together is providing successful results for Malta. He added that the government will keep on taking the necessary decisions to maintain economic growth, and that wellbeing reaches everybody.

“Surplus to be shared with population” – PM

“Completely different from the 2013 version” – PL

From its end, Partit Laburista (PL) said that this economic growth pattern contrasted greatly the report that the same EC had issued on Malta in 2013. In a press release, the Pl said that the 2013 report was titled Malta: Subdued investment holds back growth. This was pointed out by Parliamentary Secretary Silvio Schembri, EP PL candidate James Grech and Cospicua mayor Alison Zerafa. Schembri pointed out how the 2013 report did not mention anything on private consumption and investment which have meanwhile increased at the rates of 7% and 10% respectively.