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Malta: continuing economic growth in 2016

19.08.2016

During the first quarter of 2016, the Maltese economy increased by 5.2%. In nominal terms, the economy of Malta is forecast to have risen by 7.6%. The figures are impressive especially when compared to figures within the European Union and the Euro Area, where are experiencing a respective growth of 1.8 and 1.7%.

This robust economic expansion reflects steady growth in investment and private consumption. In the first quarter of 2016, investment activity registered an important increase of 16.2% (or €57.6m) even though Malta is at the beginning of the 2014-2020 EU funding program. Private consumption rose by 5.9% (or €58.5m), when compared to 2015. Exports of goods and services also registered a 0.5% increase.

Economic growth concerned the majority of sectors: the real estate sector increased by 11.9% and the professional, scientific and technical activities sector rose by 11.2%. Increases were also recorded in: information and communication; wholesale and retail trade; mining and quarrying; as well as agriculture and fishing. During the same period, the manufacturing sector registered a significant increase (6.79%) in value added.

In the first quarter of 2016, the robust economic activity enhanced business profits, which increased by 7.7% (or €65.4m).

Minister for Finance, Professor Edward Scicluna commented that the GDP data confirm that the Government has achieved one of its main policy targets which is that of increasing Malta’s growth potential. This results from the implementation of various supply-side policies, including measures to increase labour force participation and measures to attract local and foreign investment by attaining economic and fiscal stability.