A new analysis predicting the economic downturn in countries due to the COVID-19 pandemic sees Malta recovering from the crisis better than most countries.
The International Monetary Fund’s World Economic Outlook, published this month, described a changing world, with an “altered” economic landscape.
With the crisis impacting each country differently, the IMF predicted Malta’s GDP to shrink by 2.8% this year, before rebounding next year with a 7% growth rate.
This places Malta among the most resistant European countries, with only Hungary and Serbia with a 3.1% and 3.0% downturn predicted respectively coming near Malta’s numbers.
An average decrease of 6.6% in GDP was forecast across Europe, with some European countries predicted to be impacted at a much larger rate. For example, the Netherlands is expected to suffer a 7.5% in GDP decrease in 2020 and a 3% growth rate next year.
The news was welcomed by Prime Minister Robert Abela.
Economy Minister Silvio Schembri also welcomed the forecast, claiming that the financial package the government is offering to businesses impacted by the crisis is amongst the best in the world.
“We reiterate our commitment for Malta to return to a state of unprecedented economic, institutional and social growth once the pandemic has passed,” he said. “We must keep helping businesses and the self-employed while restructuring where it’s needed.”