IMF report shows positive economic outlook for Malta

The Malta Chamber of Commerce, Enterprise and Industry has welcomed a report issued by the International Monetary Fund (IMF) on 20th January, where it stated that the economic outlook for Malta is set to remain strong for 2016 and 2017.

According to the report, economic growth is expected to be driven by domestic demand, as well as the eventual recovery of export trade.

Referring to the report, the Malta Chamber noted that real GDP growth is expected to remain buoyant in 2016 with a projected 3.5 % growth.

The Chamber adds that the growth compares well with the extraordinary growth due to one-time major infrastructural projects in 2015, estimated at 4.3%.

“Unemployment is set to remain at a historical low of 5.4% this year, as inflation is set to increase slightly to 1.8%,” it said, adding that although the positive trend of the economy is very encouraging, it does not mean that the country can afford to become complacent.

“We must ensure that growth is sustained on a long-term basis, and that this is the result of export-led activity rather than domestic demand,” a statement issued by the Chamber reads.

“Government must continue to ensure business friendly conditions that are conducive to economic growth and provide an ideal scenario for investment.”

The Chamber further appealed to the government to remain efficient in its processes, and curb public spending while at the same time maintaining the momentum garnered in reforming sectors such as energy, the labour market, healthcare and public finances.