Record improvement in balance of payments

Before 2013, Malta used to have very large deficits in the international balance of payments because exports were significantly lower than imports.

Last year marked a record improvement in Malta’s’s balance of international payments. This came as a deficit of €686 million in the country’s current account turned into a surplus of €182 million; an overall improvement of €868 million in just one year.

This reflected two developments. On the one hand, Malta has improved the balance between exports and imports of goods, by around €650 million. At the same time it has vastly improved the surplus of exports over imports of services, bringing it to almost €5.7 billion. In this type of trade, Malta has had an improvement of almost half a billion euros, largely reflecting the large recovery of tourism last year.

In contrast, there has been a sharp increase in the amount of profits transferred from foreign firms operating from Malta to their foreign owners. This was to be expected in light of the record profits that were observed last year.

Before 2013, Malta used to have very large deficits in the international balance of payments because exports were significantly lower than imports.

Photo: Shutterstock

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Menu