Malta

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

Malta has been ranked in the top 20 global countries most likely to sustain economic growth over the medium and long term. The country has achieved a great economic development within the last 40 years. Malta managed to maintain an average GDP growth rate of 5% during 1990s mainly because of large investments in infrastructural projects. However, the economy suffered heavily during the initial years of 2000s due to global slow down but has now started recovering again. The average growth rate for 2007 was 3.8%.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	6.44	7.51e	8.34	7.44e	7.62e
GDP (constant prices, annual % change)	3.2	3.6e	1.6e	-1.5e	1.1e
GDP per capita (USD)	15,850	18,366	20,202	17,883e	18,150e
General government balance (in % of GDP)	-2.3	-1.8e	-4.1	-3.6e	-2.5
Inflation rate (%)	2.6	0.7	4.7	1.8e	1.7e
Unemployment rate (% of the labor force)	7.1	6.4	5.8	6.9	7.6
Current Account (billions USD)	-0.60	-0.46	-0.53	-0.38	-0.40
Current Account (in % of GDP)	-9.2	-6.1	-6.3	-5.1e	-5.2e

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

The island's economy is primarily based on tourism (which accounts for 30% of country’s GDP with over 1 million tourists visiting Malta annually), on manufacturing (electronics and pharmaceuticals) which accounts for 20% of the GDP and 75% of the total exports and on financial activities (which accounts for 13% of the country GDP). Besides, it should be noted that Malta does not have any mineral or energy reserves and is completely dependent on imports to meet its energy needs.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	2.0	29.6	68.0
Value added (in % of GDP)	-	-	-
Value added (annual % change)	-	-	-

- last available data.

Monetary indicators	2003	2004	2005	2006	2007
Euro (EUR) - Average annual exchange rate for 1 USD	0.88	0.80	0.81	0.79	0.73

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 66.1/100
Position:: moderately free
World Rank:: 47 out of 179
Regional Rank:: 24 out of 44

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Being centrally located in the Mediterranean, Malta has long portrayed itself as a bridge between Europe and North Africa, particularly Libya with whom it has enjoyed positive diplomatic and commercial ties. Its total trade-to-GDP ratio is nearly 153%. Malta's top three export partners are: the European Union, the USA, and Singapore. It mainly exports electric & electronic products, machinery, clothes, and printed books and newspapers. The top three import partners are: Italy, the United Kingdom, and France. Malta mainly imports electrical and electronic components, machinery, mineral fuels & oils, vehicles, plastics, and food products. The EU is Malta’s largest trade block.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	3,232	3,583	3,709	4,143	4,616
Exports of goods (millions USD)	2,592	2,720	2,587	2,937	3,228
Imports of services (millions USD)	894	1,052	1,204	1,769	2,248
Exports of services (millions USD)	1,379	1,676	2,007	2,666	3,411
Imports of goods and services (in % of GDP)	82.5	83.1	82.9	91.4	89.9
Exports of goods and services (in % of GDP)	80.8	79.2	77.6	87.4	87.7
Trade Balance (millions USD)	-640	-863	-1,123	-1,206	-1,387
Trade Balance (including service) (millions USD)	-155	-239	-320	-310	-224
Foreign trade (in % of GDP)	163.3	162.3	160.5	178.8	177.7

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
Singapore	13.6%
Germany	13.0%
France	11.6%
United States	9.0%
United Kingdom	8.2%
Hong Kong	6.6%
Japan	5.7%
Italy	5.1%
Libya	3.0%
South Korea	1.9%
Nigeria	1.3%
China	1.2%
Netherlands	1.1%
Finland	0.9%
Saudi Arabia	0.8%
Panama	0.7%
Denmark	0.7%
Tunisia	0.6%
Canada	0.6%
Poland	0.6%
See more countries	44.6%

Main suppliers (% of imports)	2008
Italy	26.4%
United Kingdom	12.7%
France	7.7%
Germany	7.6%
Singapore	5.9%
Netherlands	3.8%
China	3.1%
Spain	3.1%
Switzerland	2.2%
United States	2.2%
Belgium	1.8%
Russia	1.8%
Japan	1.7%
Turkey	1.7%
South Korea	1.6%
Denmark	1.4%
Libya	1.3%
Austria	1.1%
India	0.9%
Malaysia	0.9%
See more countries	39.7%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	50.8%
Pharmaceutical productsPharmaceutical products	8.3%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	4.9%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	4.8%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	3.3%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	3.2%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.9%
Plastics and articles thereofPlastics and articles thereof	2.8%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	2.1%
Rubber and articles thereofRubber and articles thereof	2.1%
Knitted or crocheted fabricsKnitted or crocheted fabrics	1.8%
Miscellaneous edible preparationsMiscellaneous edible preparations	1.7%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	1.3%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.0%
Organic chemicalsOrganic chemicals	1.0%
Articles of iron or steelArticles of iron or steel	0.7%
CerealsCereals	0.7%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.5%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.5%
Miscellaneous chemical productsMiscellaneous chemical products	0.4%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.4%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.4%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.4%
Iron and steelIron and steel	0.3%
Glass and glasswareGlass and glassware	0.2%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.2%
Ships, boats and floating structuresShips, boats and floating structures	0.2%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.2%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.2%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.2%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.2%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.1%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.1%
Aluminium and articles thereofAluminium and articles thereof	0.1%
See more products	27.9%

Main imports (% of imports)	2008
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	21.2%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	16.8%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	7.6%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	4.0%
Plastics and articles thereofPlastics and articles thereof	3.9%
Pharmaceutical productsPharmaceutical products	2.6%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	2.3%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.2%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	2.1%
Organic chemicalsOrganic chemicals	1.7%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	1.7%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	1.4%
Meat and edible meat offalMeat and edible meat offal	1.4%
CerealsCereals	1.4%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.3%
Iron and steelIron and steel	1.3%
Articles of iron or steelArticles of iron or steel	1.3%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.2%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	1.2%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	1.2%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	1.2%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.1%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	1.0%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	1.0%
Miscellaneous edible preparationsMiscellaneous edible preparations	1.0%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.8%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.8%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.8%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.7%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.7%
Aluminium and articles thereofAluminium and articles thereof	0.7%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.7%
Ceramic productsCeramic products	0.7%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.7%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.7%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.6%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.6%
Ships, boats and floating structuresShips, boats and floating structures	0.6%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.6%
Miscellaneous chemical productsMiscellaneous chemical products	0.5%
Sugars and sugar confectionerySugars and sugar confectionery	0.5%
Glass and glasswareGlass and glassware	0.5%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.4%
Rubber and articles thereofRubber and articles thereof	0.4%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.4%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.4%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.4%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.3%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.3%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.3%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.2%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.2%
Copper and articles thereofCopper and articles thereof	0.2%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.2%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.1%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.1%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.1%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.1%
See more products	46.4%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

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

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 2009
Parliamentary elections: March 2013