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flag Malta Malta: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

Malta has achieved an exceptional economic development during the last 40 years. The country managed to maintain an average GDP growth rate of 5% during 1990s, mainly due to large investments in infrastructure projects. However, the economy experienced a global slowdown at the beginning of the second millennium.

The economic crisis affected the country but to a lesser extent than the rest of Europe. Malta has a solid financial foundation, with little inclination for toxic loans, the country came out of the crisis relatively well. The only sector that was really affected by the crisis was the tourism sector with a reduction in foreign visitors into the country. The only damper is still its excessive budget deficit, which is over the 3% threshold imposed by the European Commission.  The European Commission has insisted that this deficit  must be reduced by 2011.  The country's budget for 2011 anticipates a growth and includes measures aiming to attract FDI.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 8.178.279.33e9.7810.11
GDP (Constant Prices, Annual % Change) -3.33.1e2.52.22.2
GDP per Capita (USD) 19,637e19,70722,058e22,93623,543
General Government Balance (in % of GDP) -3.6e-4.1-3.1e-3.1-2.5
General Government Gross Debt (in % of GDP) 67.3e67.1e66.366.165.9
Inflation Rate (%) 1.82.02.62.32.4
Unemployment Rate (% of the Labor Force) 7.06.96.36.26.2
Current Account (billions USD) -0.61-0.40-0.36-0.47-0.63
Current Account (in % of GDP) -7.5-4.8-3.8e-6.2-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

The island's economy is primarily based on tourism (which accounts for almost 30% of the country’s GDP, with over 1 million tourists visiting Malta annually), on manufacturing (electronics and pharmaceutical products) which accounts for 20% of the GDP and 75% of the total exports and on financial activities (which account for 13% of the GDP).
Malta does not have any mineral or energy reserves and it is completely dependent on imports in this field.

The crisis affected the tourism sector due to a decrease in visitors which was clearly noticeable in 2009-2010, notably the European visitors.  In 2011, this sector is expected to renew its growth.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 1.4 24.7 72.9
Value Added (in % of GDP) 1.8 33.0 65.2
Value Added (Annual % Change) -4.8 -15.5 5.3

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20032004200520062007
Euro (EUR) - Average Annual Exchange Rate For 1 USD 0.380.340.350.340.31

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Malta on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
65.7/100
Position:
Moderately free
World Rank:
54/179
Regional Rank:
24/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

Being centrally located in the Mediterranean, Malta has, for a long time, portrayed itself as a bridge between Europe and North Africa, particularly with Libya with which it has always maintained positive diplomatic and commercial ties. Foreign trade represents more than 150% of Malta's GDP. Its three main export partners are the European Union, the United States and Singapore. It exports mainly electrical and electronic products, machinery, textile products, books and newspapers. Its three main suppliers are Italy, the United Kingdom and France. Malta mainly imports electrical and electronic components, machinery, mineral fuels and oil, vehicles, plastics, and food products.
The country's trade balance has, for a long time, been in the red. However, the situation improved in 2008-2009 due to exports picking up again, propelled by the development of a large export pharmaceutical industry.  In 2011, a series of measures favoring the internationalization of Maltese companies will be conducted.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 4,3074,7604,7834,1354,176
Exports of Goods (million USD) 2,7963,0772,9462,2422,522
Imports of Services (million USD) 1,7442,2002,3002,1182,030
Exports of Services (million USD) 2,6253,4613,8413,4703,480
Imports of Goods and Services (Annual % Change) 9.5-0.8-2.9-10.6-
Exports of Goods and Services (Annual % Change) 10.52.7-3.0-7.6-
Imports of Goods and Services (in % of GDP) 91.791.586.873.7-
Exports of Goods and Services (in % of GDP) 86.890.583.874.2-
Trade Balance (million USD) -1,209-1,351-1,849-1,370-1,229
Trade Balance (Including Service) (million USD) -393-298-316-96133
Foreign Trade (in % of GDP) 178.5182.0170.7147.8-

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
Singapore 14.7%
United States 11.0%
Hong Kong 10.3%
Germany 9.3%
France 7.9%
See More Countries 46.8%
Main Suppliers
(% of Imports)
2010
Italy 23.2%
United Kingdom 8.3%
Germany 8.2%
France 7.9%
Singapore 4.0%
See More Countries 48.4%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Diodes, transistors and similar semiconductor...Diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices, incl. photovoltaic cells whether or not assembled in modules or made-up into panels (excl. photovotaic generators); light emitting diodes; mounted piezo-electric crystals; parts thereof 46.2%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 5.6%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 5.3%
Electrical apparatus for switching or protecting...Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits, e.g., switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders and junction boxes, for a voltage <= 1.000 v (excl. control desks, cabinets, panels etc. of heading 8537) 3.9%
Fish, fresh or chilled (excl. fish fillets and...Fish, fresh or chilled (excl. fish fillets and other fish meat of heading 0304) 3.3%
See More Products 35.8%
Main Imports
(% of Imports)
2010
Electronic integrated circuits and microassembliesElectronic integrated circuits and microassemblies 15.1%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 8.4%
Yachts and other vessels for pleasure or sports;...Yachts and other vessels for pleasure or sports; rowing boats and canoes 4.2%
Powered aircraft "e.g. helicopters and aeroplanes"...Powered aircraft "e.g. helicopters and aeroplanes"; spacecraft, incl. satellites, and suborbital and spacecraft launch vehicles 3.9%
Parts of aircraft and spacecraft of heading 8801...Parts of aircraft and spacecraft of heading 8801 or 8802, n.e.s. 3.7%
See More Products 64.7%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Ministry of Finance and Economic Affairs
Statistical Office
National Statistics Office
Central Bank
Central Bank of Malta
Stock Exchange
Malta Stock Exchange
Search Engines
Explore Malta
Search Malta
Google Malta
About Malta
About Gozo
Economic Portals
Malta Business Bureau

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Political Outline

Executive Power
The President is the chief of state and is elected by the parliament for a five-year term. The Prime Minister is the head of the government and enjoys the executive powers which include implementation of law and running the day-to-day affairs of the country. The leader of the majority party or majority coalition is appointed as Prime Minister by the President to serve a five-year term. The Cabinet is appointed by the President on the advice of the Prime Minister.
Legislative Power
The legislature is unicameral. The parliament consists of the House of Representatives having 65 seats; its members are elected by popular vote on the basis of proportional representation to serve five-year terms. In case a political party wins an absolute majority of votes but does not have a majority of seats, then that party is given additional seats to ensure a parliamentary majority. President can dissolve the parliament on the advice of the Prime Minister or alternatively parliament can dismiss a government by passing a no-confidence motion.
Main Political Parties
Since World War II, the political culture in Malta has been mainly dominated by a two-party system. These two political parties are: PN (Nationalist Party) which is a Christian democratic party, and MLP (Malta Labour Party) which is a social democratic party. Another party worth mentioning is AD (Democratic Alternative) which is a Green political party.
Current Political Leaders
President: George ABELA (since April 2009)
Prime Minister: Lawrence GONZI (since March 2004) - PN.
Next Election Dates
Presidential: December 2014
Parliamentary elections: March 2013
 

Indicator of Freedom of the Press

World Rank:
16/178
Evolution:
4 places down compared to 2009
 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
1/7
Civil Liberties:
1/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012