According to a fresh report by PwC Malta, Malta is bucking global trends with strong economic growth. The report forecasts a GDP growth of 4.4% for fiscal year 2024, slightly down from the previous year’s 5.6%. This growth stands out against major economies like the US, Japan, Italy, and France, which are expected to see declines.
Although Malta’s growth is projected to align more closely with the euro area average soon, domestic consumption remains the primary driver of its GDP, echoing the Central Bank of Malta’s findings. Despite this, when adjusted for inflation and population growth, real consumption per capita hasn’t changed much since 2019.
Inflation continues to be a global concern, and Malta is no exception. Despite a decline, the island’s inflation rate is anticipated to surpass the EU average due to rising prices in food and services. To address this issue, the Maltese Government has implemented the “Stabbiltà fil-Prezzijiet” scheme, aiming to reduce prices on essential goods. If sustained throughout the year, this initiative could potentially alleviate inflation by 0.31 percentage points.
Preliminary data for 2024 suggests a slowdown in economic sentiment and while inflation is moderating, it remains higher than the euro area average, indicating a need for further stabilization.
Find out how you can invest in this resilient economy and contact Merle Whale merle@maltalifestyle.co.za