Statistics published by the renowned journal The Economist confirm Malta’s strong economic progress over recent years.
In an article published on 15th December, the publication looked at how countries around the world compare when one adjusts their gross domestic product to reflect the size of their population, the level of prices, and the number of hours people work in each country. Under every indicator Malta has been ranked among the best countries in the world. In what The Economist calls ‘the Rich List of countries’, Malta features among the 30 richest countries in the world.
When looking at GDP adjusted for population size, this amounts to $33,900 for Malta. This indicator rises to $55,900 when adjusting for population size and the price level in our country compared to that around the world. Finally, when one also adjusts for how many hours the Maltese work compared to the international average, the indicator amounts to $43,200. According to The Economist, the latter is the most relevant indicator because it adjusts for the effort that needs to be made to achieve this level of economic prosperity.
When comparing the result for Malta with that of other countries for the year 2022, the most recent year, Malta ranks 30th out of 182 countries, up from 31st place a year earlier. In just one year Malta managed to rise from having the equivalent of 61% of the prosperity of the American economy to 65%, whereas compared to Germany it has risen from 64% to 67%.
According to The Economist, last year the Maltese economy – adjusted for population size, price changes as well as hours worked – saw a growth of 13%. The increase across the European Union was 10%. The global economy also saw a 10% increase, or more than a quarter less than the economic improvement observed in Malta. Economic prosperity in America and Japan increased by 6%, or less than half that in Malta, while in Germany the increase was 8%, or a third less than Malta.
Finance experts told The Journal that this confirms how well Malta is managing to improve its economic performance and how wrong the Opposition and others are when they claim that the country’s economy is only growing because of an increase in population. They pointed out that, in fact, even when one uses an indicator such as that published by The Economist – which adjusts for population changes – the level of economic prosperity in Malta has increased much more than in economic giants such as Germany, the United States, and Japan.
This was not the first time in 2023 that The Economist has awarded a certificate of excellence to Malta. In fact, on 12th October, the same authoritative journal, read by the world’s major investors, chose Malta as the second most strongly performing European country and awarded it four gold medals and one bronze when it comes to five key economic indicators that it chose to measure overall economic policy-making effectiveness.
Photo: Denisa Lesniaková