Europe's Winter 2019 Economic Forecast | Malta Tops the List

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Growth Map (EU, Malta)
 
The European economy is expected to grow for the seventh year in a row in 2019, with expansion forecast in every Member State.
 
The report states that Malta's economy is projected to grow the fastest in the European Union.
 
Maltas’ growth rate is projected at 5.2% this year and 4.6% in 2020, by far the best among all EU member states.
 
Malta’s economy maintained a strong growth trajectory in 2018, with a particularly sharp expansion in the third quarter.
 
In 2018, the real GDP growth is estimated to have reached 6.2%, making Malta one of the most progressive economies in the EU.
 
As per the National Statistics Office (NSO), the government recorded a surplus of €127.8 million, as total revenue increased to €1,234.5 million, while total expenditure increased to €1,106.7 million.
 
The increase in revenue was supported by vital growth in revenue from both direct and indirect taxes reflecting the record increases in employment and the robust growth in private consumption.
 
Investment remained subdued in the first three quarters of 2018, especially in non-residential construction and transport.
 
In 2019 and 2020, real GDP growth is set to ease to 5.2% and 4.6%, respectively.
 
As global demand moderates, economic growth is anticipated to continue relying on domestic demand, supported by high private and public consumption.
 
Malta - Real GDP growth and contributions graph 2019

Malta records ‘largest decrease in debt and the highest surplus in the EU’

By Yashica | EU, GDP, growth, malta, News | No Comments
Malta records ‘largest decrease in debt and the highest surplus in the EU’
 
The latest public finance statistics published by Eurostat was received by the ministry of Finance earlier on Monday, 21st January.
 
Malta recorded the highest fiscal surplus (3.8%) along with the largest decrease in its debt-to-GDP ratio (-3.1 p.p) amongst the 28 EU member states in third quarter of 2018.
 
Minister for Finance Edward Scicluna said that such records continue to

keep Malta at the top of the EU’s fiscal ranking, thanks to the number of structural reforms undertaken by this government during the last six years.”

As per the National Statistics Office (NSO), the government recorded a surplus of of €127.8 million, as total revenue increased to €1,234.5 million, while total expenditure increased to €1,106.7 million. 
 
The increase in revenue was boosted by significant growth in revenue from both direct and indirect taxes reflecting the record increases in employment and the robust growth in private consumption.
 
The increases in expenditure mainly reflected the expense on the income tax relief budget measure, on education and social benefits, as well as on wages and salaries reflecting the enhanced collective agreements of public sector employees.
 
Additional expenditure was allocated to cover the Malta’s Own Resources transfers to the EU and EU funds transfers to entities outside government.
 
Consequently, the General Government debt for the same period decreased both in absolute terms and in per cent of GDP. Indeed, the debt-to-GDP ratio fell to 45.9%, reflecting a €325.9 million decrease in national debt to €5,512.0 million.  
 
This is well below the 60% benchmark set by the EU. 
 
Simultaneously, Government guaranteed debt decreased by €338.4 million from €1,422.3 to €1,083.9 million, both when compared to the corresponding quarter of 2017 – a total decrease of €664.3 million to mark the largest decrease to ever be recorded by a Maltese Government.