Minister for Finance Edward Scicluna welcomes the European Commission’s 2018 Winter Forecast wherein Malta’s growth rates have been revised upwards for the years 2018 and 2019.
Minister Scicluna stated that, “this upward revision on behalf of the EU is a confirmation that Malta’s high rates of economic growth are here to stay.”
The European Commission acknowledges the strong growth recorded by the Maltese economy last year, adding that growth continued to surprise positively, with growing services exports continuing to be the main drivers of growth. The report further notes that growing exports are also serving to boost the current account surplus.
In 2018 and 2019, the European Commission expects private consumption to become the main driver of growth on the back of strong employment growth, improved consumer confidence and growing disposable income. Investment is forecast to recover, led by the residential construction sector. On external trade, the report expects exports to continue rising in line with the growing demand by Malta’s main trading partners.
The report notes that inflation was lower than the euro area average last year as relatively moderate increases in regulated fuel prices contained overall inflation. It further expects inflation to increase modestly but remain below the 2% threshold in the coming years.