VALLETTA (MALTA) (ITALPRESS/MNA) – Maltàs economic growth is expected to slow down to 3.7% this year from just above 7% in 2022. The Central Bank of Malta revised its projections in its latest forecast for the Maltese economy, adding that the Gross Domestic Product growth will decline marginally to 3.6% by 2025.
In 2023, net exports are expected to be the main contributor to GDP growth. However, the domestic demand is expected to grow at a slower pace when compared to 2022, which had been characterised by extraordinary investments. The Central Bank of Malta added that from 2024 domestic demand is expected to be the main driver of growth.
The forecast projects moderate employment growth over the period, while wages are expected to pick up due to relatively high inflation and a tight labour market.
The CBM said annual inflation is projected to stand at 5.9% this year, only marginally lower from 6.1% in 2022.
The government deficit is expected to decrease while Maltàs debt-to-GDP ratio is set to reach 54.7% by 2025.
The Central Bank of Malta noted that there are risks for this year that might lead to an increase in the deficit as a result of additional support measures related to the national airline Air Malta and higher than expected outlays on electricity distribution and compensation for energy blackouts.

– photo: Agenzia Fotogramma –

(ITALPRESS).

Source: medNews