The Central Bank of Malta has forecast that over the next three years Malta’s economy is expected to remain strong and is expected to grow between 4% and 5% annually. Reviewing the country’s economic prospects for the period 2018 to 2020 the Central Bank said economic growth is expected to stabilise while public finance is expected to attain a positive balance.
New investment projects, reforms in the energy sector and labour force increases are expected to maintain high levels of economic growth to 2020.
In a review of Malta’s economic prospects over the next 30 months, the Central Bank forecast a growth in real terms this year of 5.4%, a reduction to 5% next year and then 4.4% in 2020.
The Bank said that compared to previous forecasts for the period, the forecast for this year and 2019 have been slightly reduced because of less economic growth than had been forecast for the First Quarter. However, it maintained that growth is to remain at high levels sustained by supply and demand. Domestic demand has sprawled because of increased consumption demand while investment will stimulate and sustain growth.
As a result of economic growth the employment market is expected to remain at high and stable levels while the registered unemployment rate for the next two years is expected to remain at the low level of 4,3%.
Annual inflation over the period to 2020 is expected to grow to 1.9% until two years’ hence as a result of increased wages.
Government finance is expected to remain at a positive balance over the next 30 months. National Debt as compared to GDP is expected to decrease by 40% up to 2020.