Malta’s Economic Growth To Slow Down In Coming Years, Central Bank Warns
According to the Central Bank’s latest projections, the GDP growth rate, which was around 7.0% in 2022, is set to drop to 4.0% in 2023.
This downward trend is expected to continue slightly further to 3.8% in 2024 and 3.7% in 2025.
Compared to earlier projections, the current GDP growth prediction is revised upwards by 0.3 percentage points in 2023 and by 0.2 percentage points in 2024 and 2025.
In 2023, the significant contributor to GDP growth is currently net exports.
The sharp deceleration in imports, primarily goods imports, which were previously boosted by substantial investment in the aviation sector, and strong growth in exports are expected to drive this performance.
On the flip side, domestic demand is predicted to negatively affect growth due to the strong investment in 2022 that has set a high base.
Do you think Malta is set to go through economic hardships?