The European Commission’s report on Malta’s economic forecast is positive to say the least as Malta is projected to have the highest economic growth rate across the EU by the end of the year. 

When you’ve been through a pandemic which created a slowdown, and you find out from a high-profile report that Malta’s economy is set to blossom this year, fills you with courage and determination to continue working hard for the good of all and is a confirmation that we are on the right track.

A main excerpt of the report states: “In the course of 2022, growth is expected to pick up again as domestic demand recovers, supported also by the implementation of the Recovery and Resilience Plan. Real GDP is forecast to grow by 6% in 2022 and 5% in 2023. Malta is expected to reach pre-pandemic levels of economic activity around mid-2022.

If that’s not good news, what is?

This didn’t happen by chance. From the onset, the Maltese Government put together an economic recovery plan which included a bunch of measures to support businesses and individuals.

It is highly challenging to strike a balance between health restrictions and keeping the economy as healthy as possible. The situation kept changing. We hadn’t a fixed manual to guide us through. But as our Prime Minister stated, we managed to strike a right balance between saving lives, which is sacred to us, and saving the livelihood of people in terms of safeguarding their financial situation.

Can you imagine if the Nationalist Party was leading the country in such a trying time when a PN Administration led Malta into the excessive deficit procedure several times?

It is no secret that economies that are motivated to grow at a rapid pace help improve the productivity aspect of companies and the country at large and there are ample opportunities for those who are willing to innovate and reform.

All countries will face new challenges as the global landscape evolves, especially after the pandemic, and Malta is no exception. But in the same way we took the bull by its horns during COVID, and implemented measures from the start, we now need to continue to remain focused and seize the opportunity to evolve at the same rate as technology is.

It is not just about the private sector. The Government is always looking to improve the capabilities of the public sector and working to make Government services more efficient and lessen any bureaucratic procedures so that businesses, including foreign firms who are based in Malta, have who to turn to when in difficulty so one can operate smoothly without hiccups. All this helps the economy thrive in more ways than one and makes Malta attractive to invest in.

The report flags Malta’s labour shortages. The Government is working to ensure that the skills’ gap is narrowed and this is why this Government invests in students who are tomorrow’s future workers. I will mention a few of the many initiatives that we have emerged with in collaboration with leading entities and firms, both local and international ones.

For instance, we launched an accredited programme for students seeking to pursue a career in video game development and immersive technology in conjunction with Unity Technology and the Gaming Malta Foundation. Unity creates 3D real-time development software. The programme is being offered to educators too. This followed the launch of the basecamp incubator space which ensures growth of the technology sectors.

Such initiatives are important because both AR and VR are diversifying at breakneck speed and transforming all sectors of the economy. Another initiative is the BOV Studies Plus+, a loan portfolio, the latest pot being that of €15 million which supports students in achieving their ambitions. It includes a moratorium during the study period plus one year during which the student does not pay any interest, a longer repayment term, no collateral requirements and a low interest rate during the remaining term of the loan. This initiative was done in close collaboration with the Malta Development Bank and supports students in achieving their ambitions.

To conclude, the adverse effects of the pandemic could never be underestimated in the long-term, and this is exactly why we need to up our game across all sectors of the economy as human capital remains our only resource.

Silvio Schembri is Minister for the Economy and Industry.