Monday 17 October 2016 marked the presentation of the fifth budget of this government’s legislature, one which focused primarily on social welfare. It also addressed the need to facilitate the transfer of family businesses across generations whilst also stimulating accessibility to finance for SMEs via the Malta Stock Exchange and alternative trading platforms such as Prospects.
In 2015, growth in Government final consumption expenditure increased by 5.0 per cent following a 7.2 per cent increase registered a year earlier. Real GDP is forecasted to grow by 3.5 per cent in 2016 and by 3.1 per cent in 2017. Whereas the deficit for 2016 was originally estimated at 1.1% it is now expected to decrease to 0.7%, with a further reduction for the coming two years to 0.5% for 2017 and 0.2% for 2018, projecting a balanced budget for 2019.
The Minister announced that throughout 2016 the Maltese economy grew by 4.1%, more than double the Eurozone average, and is projected to sustain a 3.5% growth throughout 2017. This is in line with the recent announcement by ratings agency Standard & Poor’s which raised Malta’s long-term rating to ‘A-’, predicting that the economy will continue to grow by an annual average of 3 per cent until 2019.
Download this year's budget highlights.
Contact us today to better understand the impact of the 2017 budget on your business and how to capatilise on Malta’s economic scenario.