The Central Bank of Malta, in its latest economic report, is forecasting a 3.6% growth of the Maltese economy, up from the 2.8% forecast last December, the government said in a statement.

Among other predictions, the Central Bank is saying that private investment is set to increase by 12.3%, very close to the 14% increase registered last year. This investment is linked with the influx of European Union funds, the power station project and construction work.

The Central Bank is also envisaging a rise in employment, low inflation and a reduction in government debt to 66.9% of GDP. The deficit is predicted to fall below 2%, the government said.