The European Commission publishes economic forecast of countries three times a year. According to the European Commission’s Economic forecast spring 2018 Report on Malta,
Malta’s economy is among the fastest growing economies in the EU, with record-low unemployment and moderate wage growth. The current account and the budget balances are set to remain in surplus, said the Commission.
Malta has recorded the highest economic growth in the Euro Area with a real GDP growth rate of 6.6 per cent in 2017.
Economic growth is projected to moderate but to remain vigorous over the forecast horizon. M
In 2017, the fiscal surplus increased substantially, to 3.9% of GDP. This much better-than-expected outcome is explained by the high growth rate of current revenue, including both tax revenue and the proceeds from Malta’s citizenship scheme (2.6% of GDP).
The robust growth momentum enjoyed by Malta in recent years continued in 2017. Real GDP grew by 6.6% on the back of a significant current account surplus. Growth was predominantly driven by the services sector, which helped to fuel export growth and strengthen the external position.
The government debt-to-GDP ratio, which fell to 50.8% in 2017.
Real GDP growth is forecast to average 5.8% for 2018 as a whole, in a context of favourable labour market conditions and high consumer confidence. The strong performance of the services sector, particularly in areas such as tourism, remote gaming and professional services, is expected to sustain the sizeable current account surplus.
