The Ministry for Finance and Financial Services welcomes the 2020 Winter Economic Forecast published by the European Commission (EC) which, follows the 2019 Autumn Forecast, in that it expects the Maltese economy to record the highest GDP growth rates in the EU for years 2020 and 2021.
The Commission expects Malta’s economic performance to remain buoyant despite a weaker than expected recovery in the European and global economy. Indeed, GDP growth is expected to stand at 4.0 per cent in 2020 and 3.7 per cent in 2021. Such economic growth rates are around three times higher the Euro Area average for both years.
Economic growth is expected to be fuelled by investment and net exports. Private consumption is also expected to contribute to growth. In contrast, growth in public expenditure is expected to ease this year and the next.
The Commission noted that the inflation rate declined to 1.5 per cent in 2019. It expects the inflation rate to remain at this level for both years, at par with the EU average in 2020 and falling below the EU average in 2021.
Minister for Finance and Financial Services Edward Scicluna stated, “I am pleased to note the European Commission, through its Winter Forecast, is confirming that economic growth is successfully being sustained for the foreseeable future.”