Economy - overview:
Although tourism contributes significantly to the economy, the Maltese Government has long been committed to the financial sector, in line with establishing the island as a major financial services centre. Malta provides a fairly profitable market for British goods and services especially for small to medium sized companies. It is currently ranked in 58th place in our top 80 markets. While enjoying a favourable relationship with the UK, Malta has close economic links with Italy, France, The United States and Libya (from where it sources much of its energy needs).
The United States of America has become the principle market for exports (29% of the total), followed by Singapore, France, Germany, UK and Italy. Malta produces only 20% of its own food needs, has limited freshwater supplies and no domestic energy sources. Therefore the economy is dependent on foreign trade, manufacturing (especially electronics and textiles) and tourism. In 2000, 1.2 million tourists visited the island. Malta's per capita GDP is $25,600 (2010 est.) which is 76% of EU average (2008 figures).
Malta shares close trade relations with the EU, which accounts for 46% of Malta's exports and 67% of Malta's total imports (Central Bank of Malta Quarterly Review - March 2003).
Malta’s gross national product was about US$3,678 million in 2002, giving an average income per head of about US$9,260 (World Bank figures). Agriculture plays an important role in the Maltese economy. About 28 per cent of the land is under cultivation, but because of the country’s high population density and poor soils, food must be imported. The principal crops include potatoes, tomatoes, melons, wheat, fruit, and flowers. Small numbers of poultry, rabbits, cattle, goats, and sheep are raised. Ship-repairing in the state-owned dockyards is the leading industry. The manufacturing sector includes food processing; printing and publishing; electronics; and the production of textiles and clothing, furniture and wood products, tobacco products, transport equipment (especially ships), machinery, rubber and plastic goods, and chemicals.
Tourism, a major industry, has played a large role in developing the
Maltese economy since the 1990s. Malta has many scenic and historical
attractions, especially in Valletta, plus excellent beaches. Football
(soccer) is the national sport; hockey, badminton, darts and rugby are
also popular as well as billiards and snooker.
US citizens and most Western Europeans do not require a visa for
stays of up to 90 days. In 2003, about 1,127,000 visitors arrived in
Malta, of whom 40% came from the United Kingdom. That year there were
41,365 beds available in hotels and other accommodations with a 53%
occupancy rate.
Tourism is the most important sector, generating earnings of about US$568 million in 2002 (33 per cent of export revenue) and providing jobs for about 7 per cent of the labour force. In 2003, over 1.2 million tourists visited the islands.
Most of Malta's commodity exports are electronic microcircuits (62%).
Other export commodities include clothes (5.9%), refined petroleum
products (4.4%), and toys (4.3%).
In 2004, Malta's exports totaled $2.6 billion (FOB—Free
on Board), while imports grew to $3.4 billion (FOB). Its main export
partners were the United States (which received 15.7% of total exports),
France (15.5%), Singapore (14.5%), United Kingdom (11.2%), and Germany
(10.8%). Imports included machinery and transport equipment,
manufactured and semi-manufactured goods, food, drink, and tobacco, and
they mainly came from Italy (25.4%), France (13.1%), United Kingdom
(12%), Germany (8.9%), the United States (5.2%), and Singapore (4.1%).
Major resources are limestone, a favorable geographic location, and a productive labor force. Malta produces only about 20% of its food needs, has limited fresh water
supplies, and has few domestic energy sources. Malta's geographic
position between the EU and Africa makes it a target for illegal
immigration, which has strained Malta's political and economic
resources. Malta adopted the euro on 1 January 2008. Malta's financial
services industry has grown in recent years and in 2008-09 it escaped
significant damage from the international financial crisis, largely
because the sector is centered on the indigenous real estate market and
is not highly leveraged. Locally, the restricted damage from the
financial crisis has been attributed to the stability of the Maltese
banking system and to its prudent risk-management practices. The global
economic downturn and high electricity and water prices hurt Malta's
real economy, which is dependent on foreign trade, manufacturing -
especially electronics and pharmaceuticals - and tourism, but growth
bounced back as the global economy recovered in 2010. Following a 1.2%
contraction in 2009, GDP grew 2% in 2010. In early 2011, the EU ended
excessive deficit procedures against Malta, after Malta had taken
measures to correct an excessive deficit in 2010 and appeared likely to
reach its deficit target of 2.8% of GDP in 2011.
Malta adopted the EURO on 1 January 2008.
GDP:
Purchasing power parity - $10.41 billion (2010 est.)
GDP - real growth rate:
3.7% (2010 est.)
GDP - per capita:
Purchasing power parity - $25,600 (2010 est.)
GDP - composition by sector:
Agriculture: 1.97%
Industry: 17.2%
Services: 80.9% (2010 est.)
Investment (gross fixed):
15% of GDP (2010 est.)
Population below poverty line:
N/A
Household income or consumption by percentage share:
Lowest 10%: N/A
Highest 10%: N/A
Inflation rate (consumer prices):
1.5% (2010 est.)
Labour force:
163,100 (2010 est.)
Labour force - by occupation:
Agriculture 1.3%, industry 24.8%, services 73.9% (2010 est.)
Unemployment rate:
6.2% (December 2010)
Budget:
Revenues: $3.068 billion (2009)
Expenditures: $5.511 billion, including capital expenditures of N/A (est. 2009)
Public Debt: 66.2% of GDP (2009 est.)
Agriculture - products:
potatoes, cauliflower, grapes, wheat, barley, tomatoes, citrus, cut flowers, green peppers; pork, milk, poultry, eggs.
Industries:
Tourism; electronics, ship building and repair, construction; food and beverages, pharmaceuticals, textiles, footwear, clothing, tobacco, aviation services, financial services, information technology services.
Industrial production growth rate:
N/A
Electricity - production:
2.113 billion kWh (2010)
Electricity - consumption:
1.991 billion kWh (2010)
Electricity - exports:
0 kWh (2009)
Electricity - imports:
0 kWh (2009)
Oil - production:
0 bbl/day (2009 est.)
Oil - consumption:
19,000 bbl/day (2009 est.)
Oil - exports:
N/A (2009)
Oil - imports:
17,910 bbl/day (2007)
Current account balance:
$-361.5 million (2010 est.)
Exports:
$2.347 billion f.o.b. (2010 est.)
Exports - commodities:
Electrical machinery, mechanical appliances, fish and crustaceans, pharmaceutical products, printed material.
Exports - partners: Germany 13.8%, Singapore 11.7%, France 11.6%, US 9.4%, Hong Kong 6.5%, UK 6.1%, Italy 5.5%, Libya 5% (2009)
Imports:
$4.461 billion f.o.b. (2010 est.)
Imports - commodities:
Mineral fuels and oils, electrical machinery, non-electrical machinery,
aircraft and other transport equipment, plastic and other
semi-manufactured goods; food, drink, tobacco.
Imports - partners:
Italy 25.2%, UK 12.2%, France 10.2%, Germany 9%, Netherlands 5.1% (2009).
Reserves of foreign exchange & gold:
$1.07 billion (March 2011)
Debt - external:
$5.978 billion (31 December 2010)
Currency: Since 1st January 2008:
Euros (€) (EUR)
Euro (€) (EUR) = 100 Cents (c).
Banknote denominations: € 5, 10, 20, 50, 100, 200, 500. Coins: € 2, 1; 50, 20, 10, 5, 2 & 1 cents.
Currency code:
Since 1st January 2008: EUR
Fiscal year: 1 April - 31 March
Standard of living:
Malta ranks as one of the less affluent of European countries; with a GDP per capita of US $25,600 (2010 est.) it is 76% of the EU average.
Sovereign credit rating:
Moody’s A1
Standard + Poor’s A
Fitch IBCA A+
