In its forecast for autumn 2019, the European Commission is projecting that in the next two years the Maltese economy will record the highest growth among all European economies.
The Autumn 2019 Forecast says that, in 2020, Malta’s national wealth is expected to grow 4.2%. This rate is three times greater than the average rate of the European Union, and among other ten times greater than the predicted rate for Italy.
European Commission experts predict that Malta will remain the country with the second lowest unemployment rate among all euro area countries. While Germany is expected to be the country with the lowest unemployment rate, the gap between Malta and Germany is expected to fall to just 0.1%.
The 2019 Autumn Forecast also indicates that the inflation rate in Malta will remain relatively low compared with the historical average of our country. At the same time, our country is expected to continue to record the second highest surplus in the balance of international payments among the European Union countries, as well as the third highest surplus in public accounts.
In their report on Malta, European experts say that, ” Malta’s economic performance continues to be strong, driven by domestic demand”. The increase in domestic demand comes mainly from “strong investment growth”, especially due to large projects in aviation, health and tourism. According to the European Commission, ” the fast pace of economic growth in Malta has been coupled with strong employment growth and record-low unemployment rate”.
While economic conditions are expected to deteriorate across the country, European experts still concluded that Malta’s “economic activity remains vibrant”. This means that, although the Government will greatly increase public investment and in 2020 Budget announced several measures for seniors, families and persons with disabilities were announced, the expected surplus in the country’s finances remain stable.
In fact, over the next two years, the increase in public recurrent expenditure in our country is expected to be double the European average, while public investment is expected to be one and half times the average rate in the euro area. However, the European Commission experts predict that, by 2021, the weight of national country’s debt is expected to fall below the 39% of national wealth.