Growing at a strong pace

EU statistics confirm Malta as the member state with the highest rate of economic growth and job creation

Eurostat confirms that, in the last quarter of 2023, Malta had the highest rate of economic growth and the best job creation rate across the European Union. On the one hand, GDP rose by 4.3% while employment increased by 5.7%. In contrast, across the EU there was an increase of only 0.1% in GDP while employment rose by 1%.

In fact, in nine countries in the Union, GDP fell in the fourth quarter of the year. The worst situation was that in Ireland, with a 9.1% decrease. But, more worrying than that, is the fact that in two of the five largest economies in the euro area, namely Germany and the Netherlands, there has also been a fall in GDP.

This was not the only quarter in which there were economic problems across the Union. In fact, in the Czech Republic, Estonia, Luxembourg, and Finland GDP decreased in every quarter of 2023. In Germany, Hungary, the Netherlands, Sweden, and Ireland there were declines in three out of four quarters. In Latvia and Poland there were declines in two quarters, while in Lithuania the decrease was registered in one quarter.

A country with a decline in two consecutive quarters is technically considered to be in recession. By this definition currently four European countries are in recession: Estonia, Ireland, Finland, and Sweden. Latvia, the Netherlands, and Austria are still emerging from one while the German economy, while not in recession, has not grown since the first quarter of the year.

In contrast, the Maltese economy is growing at a strong pace, so much so that in every quarter Malta’s growth rate was the highest among all EU countries. The best result was achieved in the third quarter of the year when Malta had a growth rate of 7%. This reflected the sharp expansion of tourism in the summer months when a new tourism record was set.

The Maltese economy is expected to grow further this year, as the European Commission and other international institutions are predicting that it will once again be the most dynamic in Europe.

Photo: Shutterstock

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