Following the worst recession in decades due to the pandemic, Malta’s economy has recovered strongly.
Malta has a promising outlook according the The European Commission’s spring economic forecast. Malta’s economy is set to continue to expand by 4.0% in 2023, making Malta the second highest country for growth in Europe. Last November, Fitch Ratings has affirmed Malta’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘A+’ with a Stable Outlook whilst the EU expects Malta to maintain this strong economic growth in the following years.
Malta boasts of one of the lowest inflations in Europe. According to Eurostat, the statistical office of the European Union, the annual inflation across the EU was 11.5% in October 2022. However, Malta’s inflation rate stands at a relatively low of 7.4% which is the third lowest annual inflation rate after France (7.1%), Spain (7.3%). The rise in inflation from previous years is said to be due to pressure from increasing international energy and commodity prices and the Russian invasion of Ukraine. The Maltese Government’s timely intervention is behind the relatively low inflation in Malta aiming to shield households and businesses from the full force of the adverse inflation shock. The expectation is that economic conditions remain benign and that someday, hopefully sooner rather than later, they will improve with Malta remaining in a robust position to make the most of the economic revival.
Another strong measure of Malta’s economic strength is that the unemployment rate continued to decline falling to 3.1% from the 4.4% recorded a year earlier. Malta’s unemployment rate also stood well below the average rate of 6.0% for the euro area.
There is a very high demand for skilled workers in Malta which is good news for anyone looking for employment. Rules for work permits have been relaxed as the labour market seeks to fill gaps in the workforce. The main areas of interest are for talent in health, IT, finance and education, as well as in technical and building-related professions.