Monday 9 October 2017 marked the presentation of the first budget of this government’s legislature, one which focused primarily on social welfare. Interestingly, no new income, corporate or excise taxes were announced.
In 2016, the economy grew by 5.5% in real terms, increasing to 6.3% in the first 6 months of 2017. Finance Minister Edward Scicluna announced that for 2018, economic growth is expected to reach 5.6% in real terms. It was also highlighted that during 2017, credit ratings by a number of International Agencies were upgraded, with Fitch ratings upgrading the economy from A+ to A+ stable, DBRS upgrading the economic outlook from A stable to A positive, and S&P upgrading the economic outlook from stable to positive.
Scicluna noted that despite increases in employment and record low unemployment, inflation had remained low – 1% in 2016.
In addition, Malta’s position in the Global Competitive Index (2017-2018) as published by the World Economic Forum advanced by 3 places and now stands at the 37th place.
Contact us today to better understand the impact of the 2018 budget on your business and how to capatilise on Malta’s economic scenario.