Malta’s economic growth excels that predicted in 2023

A VALLETTA (MALTA) (ITALPRESS/MNA) – According to the European Commission, Malta’s economic performance in 2023 exceeded growth expectations than it was initially projected. In 2023, the real GDP growth stood at 6.1%, 2% decrease than it was recorded in the previous year, but higher than the 4% forecasted by the European Commission. The Commission now predicts that Malta’s economy will grow by 4.6% in 2024, mostly driven by exports and private consumption. This will decline marginally to 4.3% in 2025, the Commission believes. The EC attributes Malta’s performance in 2023 to several factors, from its own upward revisions of the economy’s performance at the beginning of the year, to a “high growth” of 2.4% in its third quarter. The report notes construction activity was “weaker” in 2023, as was Malta’s investments in fixed assets.
The European Commission also predicts that inflation rates in Malta will be slightly lower than it had initially predicted, at 2.9% this year and 2.7% in 2025 attributing continuing pressures in food and services prices. By contrast, the report finds that inflation had reached a high of 5.6% in 2023, in line with what it had predicted. However, government intervention kept retail energy prices stable, mitigating some inflationary effects. The forecast comes amid calls from the European Commission to phase out Malta’s energy support measures to address government deficit concerns. Writing on X, Maltese Prime Minister Robert Abela said that these results are because “progressive decisions make a real difference in people’s lives”. The report refers to the EU’s economy performance saying it “entered 2024 on a weaker footing than previously expected”, saying that the cost of living crisis and a drop in households’ purchasing power has slowed the bloc’s economic growth. It is predicted that the EU’s economy will grow by 0.9% in 2024, rather than the original forecast of 1.3%.


Foto: Agenzia Fotogramma

Source: medNews