Malta with lowest unemployment rate in Euro Zone – IMF

A report by the International Monetary Fund Report about the global pandemic shows that Malta has the lowest rate of people looking for work in Euro Zone countries.

The IMF report entitled World Economic Outlook said that the world is continuing to recover from the pandemic however in October the recovery took a hit in many wealthy countries because of the Delta variant.

The report concluded that in the months to come, inflation will remain high in countries such as the UK and the US and that central banks need to remain vigilant.

The IMF has reduced the predicted rate of economic growth in many major world economies, especially in the US, Japan and Germany, however it said that next year many will see substantial growth.

In its analysis about Malta, the IMF predicted that economic growth in our country this year and next will be higher than average in the Euro Zone.

In fact, the Maltese economy is expected to grow at a rate of 5.7% this year and 6% next year, in other words, 0.7 % more than the Euro zone this year and 1.7% more next year.

Speaking about inflation in Malta, the IMF report is predicting that the rate in Malta will be 0.7%, in other words, 1.5% less than the Euro zone. However it predicted that next year this will be along the same lines as the Euro zone, at 1.8%.

With reference to those looking for work in Malta, the IMF is predicting a rate of 3.6% for this year, which is  4.4% less than the 8% average in the Euro zone.

For next year, Malta is expected to retain the lowest unemployment rate in the EU of 3.5%, in other words, 4.6% less than the average of Euro zone countries.

The IMF report concludes that one of the greatest problems for economic recovery around the world remains inflation, which  is mostly due to the discrepancy between demand and supply,  but also because energy prices are rising.