The Malta Independent 11 July 2020, Saturday

Malta projected to have largest economic growth in EU this year - government

Friday, 14 February 2020, 08:31 Last update: about 6 months ago

Malta is projected to have the largest economic growth in the EU this year and next year according to the 2020 winter economic forecast by the European Commission, a government statement read.

In 2020, the Gross Domestic Product is expected to grow by 4%, the government said, "more than three times the EU average," adding that the same margin is expected for the following year.

The European Commission spoke about the EU economy and said that it is "a fragile equilibrium, which could be easily derailed by unforeseen events," so much so that a section of the report is entitled  "clouds still loom over the horizon," the government statement read.

ADVERTISEMENT

The European commission's forecast reads: "While Malta's economic performance is expected to remain buoyant, GDP growth is forecast to moderate further to 4.0% in 2020 and 3.7% in 2021. Private consumption is also set to gradually moderate, reflecting a slowdown in job creation. The pace of investment growth is set to remain strong as existing projects are expected to mature. In turn, public expenditure growth is projected to ease. Expected gradual improvements in the external environment will likely support some rebound in exports, while the steady increase in imports implies a broadly neutral contribution to growth from net exports."

The government said that contrary to the opposition's statements that there is a crisis in terms of the cost of living in Malta, "European experts said that  "inflation declined to 1.5% in 2019. Headline inflation is set to remain at this level in both 2020 and 2021" The government argued that this proves wrong the oppositions 'propaganda that the country is going into a recession.


  • don't miss