Malta’s economy least affected by pandemic according to EU Commission forecast
The European Commission is forecasting that this year Malta will be the least economically affected of Eurozone Countries as a result of the pandemic.
The Commission issued its summer forecast for all EU Member Countries and stated that the economy of Eurozone Countries is expected to decrease by 8.7% in what it stated is a greater economic depression than originally forecast. However, a variance is expected between different countries.
However, the Commission’s economists expressed an amount of confidence that the worst is now over and the EU bloc will begin its recovery in the coming year.
The Commission forecast that in the coming year, Malta will experience the greatest growth at 6.3%, which is above the Eurozone average.
The report stated that the driving factor for this forecast economic growth will be the investment planted by the Government’s financial help packages to help the country recover from the impact of the pandemic. The gradual easing of restrictions is expected to increase domestic demand and increase Gross Domestic Product.
As for this year, although Malta will suffer the least impact in the Zone, the economy will decrease by 6% because of the partial lockdown that affected a number of sectors, mainly the tourist sector.
As a result there will be a decrease in investment, exports and private consumption. However, the Government’s packages will provide a buffer on the economic impact, particularly in the construction and manufacturing sectors.
In presenting these economic forecasts, the EU Commissioner for Economic and Financial Affairs, Paolo Gentiloni, said the economies of the Eurozone Countries will reduce by 8.7%.
“Our summer forecast shows first of all that the road to recovery is still paved with uncertainty,” said Paolo Gentiloni.
The Commission also forecast that during this year the countries most economically affected will be Italy, France and Spain, countries that were already experiencing economic problems and now made worse by the effects of the pandemic.