The European Commission described Malta as one of the most dynamic economies in the EU in its Winter 2019 Economic Forecast as Malta secured the highest forecasted economic growth rate in the EU for the years 2019 and 2020.
The Winter Forecast also revised upwards the outlook from the Autumn Forecast. Indeed, growth is now expected to reach 5.2 per cent this year and 4.6 per cent in 2020.
Growth, according to the European Commission, is being accompanied by bouyant private consumption, reflecting strong employment growth, increasing disposable income, and a large accumulation of savings in recent years.
The European Commission expects investment growth to pick up this year on the back of large-scale infrastructure projects in the health, tourism and real estate sectors. Nevertheless, inflation is expected to remain below the 2 per cent EU threshold both this year and the next.
On external trade, the Winter Forecast expects the current account surplus to remain large, reflecting the significant trade surplus of the internationally-oriented services sector.
Minister for Finance Prof Edward Scicluna stated: “I am impressed by the European Commission’s forecast which, has once again, revised upwards its forecast for our economy against a weaker external environment. The Commission has downgraded the Eurozone’s economic forecast amid Brexit and trade tensions.”
Source: Press Release by the Ministry for Finance