Bizzilla Air Malta Magazine – October, 2020
Malta’s GDP rose by 0.5%
A global pandemic is often the stimulus for severe economic recession and uncertainty. However, amidst the current crises coupled with the imminent global insecurities and geopolitical tensions, Malta’s flag has kept flying high. In fact, the Maltese premium has been accentuated across different facets, ranging from economic performance and employment to property markets and exportation. Despite the monumental magnitude and economic shocks imposed by the pandemic, Malta’s economy has remained resilient.
Malta was the only EU country where employment rose during the second quarter of 2020
Whilst by no means is Malta immune to the global economic downturn, its economic performance over the first six months of 2020 shows that it is well poised for a gradual but positive recovery. Whilst the euro area’s GDP contracted by 3% during the first quarter of 2020, Malta’s GDP rose by 0.5% during the same period. Whilst other economies suffered in retaining or saving jobs, recent figures from Eurostat show that Malta was the only EU country where employment rose during the second quarter of 2020. This was also confirmed by Moody’s, S&P and Fitch who all graded Malta as one of the strongest economies in Europe with minimal unemployment levels. Forecasts for 2021 also remain positive with the European Commission predicting Malta’s economy to register 4.1% growth next year.
Property sales in Malta totalled €330 million during the month of July only
The local property market has also proven resilient during such turbulent times. Whereas property markets around the world collapsed, property prices fell, and property deals were called off, property sales in Malta totalled €330 million during the month of July only. In terms of trade, Malta has also done significantly well. Whilst exports of goods decreased for all EU Member States in July 2020 when compared to July 2019, Malta registered an increase of 16.1%. This ultimately shows Malta’s resilience during large scale disruptions in supply chains and global slowdowns. From a technology and innovation perspective, Malta has also retained its attractiveness as a global hub with a skilled talent pool and progressive mentality not only to simply endure but to transform toward a new norm. This is confirmed in the 2020 Digital Economy and Society Index (DESI) which ranked Malta as the fifth EU country with the biggest advance in the digital economy. High ranking by the European Innovation Scoreboard 2020 and the Global Start-up Ecosystem have also proven Malta’s status as one of the top innovative and emerging ecosystems in Europe and beyond.
Malta’s vision is promising and encouraging
Malta’s quality of life, infrastructure, level of local labour skills, and bilingualism have increased Malta’s attractiveness in terms of foreign direct investment and investor engagement. In fact, Malta has remained active in attracting such investment into the country through strategic projects in research and development related to telehealth and digital innovation. With a government and business sector proactively working together to secure economic survival and employment protection on one end and attracting new niches of growth on the other end, Malta’s vision is promising and encouraging. With the responsibility of representing the technology sector here in Malta, Tech.mt strives to strengthen Malta’s identity as a destination of choice from a commercial, investment, and technological point of view.