Excellent forecast for Malta's GDP growth rate for 2018.
According to the European Commission’s latest economic forecast Malta’s GDP growth is expected to reach 5,6% in 2018 and 4.5% in 2019, putting Malta at the forefront in terms of growth within EU Member States. Such growth rate is more than double the average of the European economy’s average GDP growth, forecasted to reach 2.3% for 2018 and 2.0% for 2019.
Whilst in 2017 the external sector, driven by growing services exports, was the main driver of growth for Malta, private consumption is expected to be the main driver for 2018, on the back of strong employment growth, improved consumer confidence and growing disposable income. Investment is also forecast to rise when compared to 2017 , led by the residential construction sector.
The Central Bank of Malta has also recently revised its growth projections for Malta upwards, expecting to see 6.8% GDP growth this year, falling to 4.8 per cent in 2019 and 4 per cent in 2020.
Furthermore, if wages picked up more than expected, lifting private consumption, or if services exports for Malta continued to perform at the current rate, its estimates could turn out to be overly cautious..
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