The European Commission’s  Spring economic forecast gave Malta a promising outlook, predicting that Malta’s economy is set to continue to expand by 4.2% in 2022 and by 4.0% in 2023, making Malta the second highest country for growth in Europe. The EU expects Malta to maintain this strong economic growth.

There are a numbers of factors that point to the positive growth that Malta is experiencing.

Malta inflation is set to rise to 4.5% in 2022, still the 2nd lowest in Europe, clearly below the 7.5% figure for the euro area as a whole in April as observed by Moody’s. Last week, Fitch Ratings has affirmed Malta’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘A+’ with a stable outlook. The rise in inflation is said to be due to pressure from increasing international energy and commodity prices and the Russian invasion of Ukraine.

The Maltese government has made a decision to try to shield households and businesses from the full force of the adverse inflation shock hoping that economic conditions remain benign.

The unemployment rate continued to decline, falling to 3.2% from 3.6% in the previous quarter, and well below the 4.4% recorded a year earlier. Malta’s unemployment rate also stood well below the average rate of 7.4% for the euro area.

Good news for anyone looking for employment in Malta , Malta has moved to fill gaps in its labour market by relaxing rules for work permits for non-EU workers with skills in high demand. Employers no longer have to advertise vacancies locally before submitting an application for a third country national employee when hiring certain talent in health, IT, finance and education, as well as in technical and building-related professions, in addition to highly qualified staff such as CEOs and Managing Directors.

Country profiler lists some of the employment areas that are in demand in Malta

Travel and  tourism continues to face challenging times. Indeed, the erosion of spending power in Malta’s partner countries could potentially delay the recovery in tourism.

The forecast for the number of tourists in 2022 has been prudently lowered to 63% of the 2019 numbers. This translates to 895,096 tourists visited the country in the first six months of 2022, the National Statistics Office has said.

The total nights spent reached almost 6 million nights. Total tourist expenditure was estimated at €695.9 million.

While many other country’s are struggling with very high inflation, labour shortages or unemployment, Malta has managed to steer a course that has seen her keep a positive growth, even f it’s slower than expected.