Malta is set to enjoy the strongest economic growth among EU countries this year and next year, even though it will moderate from 2022, according to the autumn forecast of the European Commission, issued on Wednesday.
The commission said the island's GDP growth is expected to reach 4.0% this year from 6.9% in 2022. Growth next year is also projected at 4%. The Budget last month projected a 2024 growth rate of 4.2%.
Private consumption has decelerated slightly due to higher inflation and a slowdown in investment following a surge in aviation sector investment in 2022. Economic growth is forecast to be 4.2% in 2025.
The commission observed that while energy prices are set to remain unchanged until 2025 due to government measures, but inflation is still projected to reach 5.7% this year and then moderate to 3.3% in 2024 and 3.1% in 2025.
The general government deficit is expected to decrease gradually from 5.7% of GDP in 2022, and to stand at 4.1% in 2025. Public debt is forecast to reach 57% of GDP in 2025.
The commission said Malta is expected to maintain a high pace of employment and population growth, a key factor driving the outlook for consumption despite the expected weak recovery in real wages.
Source: Times of Malta
Growth forecast for 2024 (%):
🇲🇹 4.0🇷🇴 3.1🇮🇪 3.0🇵🇱 2.7🇨🇾 2.6🇭🇷 2.5🇱🇹 2.5🇭🇺 2.4🇱🇻 2.4🇬🇷 2.3🇸🇮 2.0🇪🇪 1.9🇧🇬 1.8🇪🇸 1.7🇸🇰 1.7🇨🇿 1.4🇩🇰 1.4🇧🇪 1.4🇱🇺 1.4🇪🇺 1.3🇵🇹 1.3🇫🇷 1.2🇳🇱 1.1🇦🇹 1.0🇮🇹 0.9🇩🇪 0.8🇫🇮 0.8🇸🇪 -0.2Autumn #ECForecast ↓— European Commission (@EU_Commission) November 15, 2023
