The Malta Independent 13 November 2019, Wednesday

EC predicts strong economic growth for Malta, but at a slower pace

Thursday, 7 November 2019, 13:39 Last update: about 6 days ago

Malta’s economic growth in the next two years is forecast to be the highest in the EU, the European Commission has said.

The EC’s autumn 2019 economic forecast indicates that Malta’s real GDP growth rate for 2020 and 2021 stands at 4.2% and 3.8% respectively.

GDP growth for 2019 stands at 5%, the second highest after Ireland.

The report predicts strong growth ahead for the Maltese economy, but at a slower pace than in previous years.

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Following record annual real GDP growth rates of close to 7% in 2017 and 2018, however, Malta’s economy started to show signs of cooling down in the first half of the year, the Commission said.

Employment growth is set to continue at a slower pace, while the unemployment rate remains at a record low.

In a statement, the government, while noting that Malta’s economy is expected to register the highest growth in the EU, also highlighted that the island’s unemployment rate would be the second-lowest in the eurozone for 2020 and 2021.

At 3.5% and 3.6 for 2020 and 2021, unemployment in Malta will be just 0.1% higher than in Germany. The lowest unemployment rate in the EU as a whole is expected in the Czech Republic, which is set to have rates of 2.2% and 2.3% over the next two years respectively.

 

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