IMF sees Malta thriving

Yet again, the International Monetary Fund has reviewed Malta’s economic prospects upwards.

The International Monetary Fund (IMF) has strongly revised Malta’s economic prospects. In the Regional Economic Outlook: Europe, the IMF’s international experts announced that, while last October they thought that the country’s economy would grow by 3.3% this year, they now forecast a growth of 5% – an upward revision by 1.7%.

In contrast, developed European economies had their forecasts revised downwards by 0.4%. The biggest downward revisions occurred for Estonia, where instead of growing there is an expected recession, with the economic outlook falling by 2.9%. The IMF also revised downwards anticipated growth for Germany, France, and the Netherlands.

The fact that Malta had the best forecast revision means that the country boasts the best economic prospects for this year. Malta is expected to experience growth more than six times the European average, and is expected to maintain this primacy of economic growth even in 2025 and 2026. Next year, Malta should grow by 4% and a year later by 3.6%. In the euro area growth will remain sluggish and reach 1.5% and 1.4%.

 Forecast for this yearRevision since October forecast
Malta5.0%+1.7%
Euro area0.8%-0.4%
Estonia-0.5%-2.9%
Germany0.2%-0.7%
Netherlands0.6%-0.5%
Italy0.7%0.0%
France1.3%-0.6%

The IMF also announced that they are revising downwards the inflation forecast for Malta, so much so that they expect next year’s rate to be near the 2% level, which is the European Central Bank’s target.

In the meantime, the IMF report indicates that, when considering the difference in the level of prices, Malta’s GDP per capita has almost reached that of Germany. At the same time, Malta is the country with the lowest unemployment rate in the European region.

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