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. The state-owned dry docks employs 3,645 people and in 2000, 1.2 million tourists visited the island. Malta's per capita GDP is $9,497 (2002 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 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 2002 some 1,133,814 people visited Malta.
Malta’s annual budget in 1998 included revenue of US$1,157 million and expenditure of about US$1,484 million. Exports earned about US$1,759 million and imports cost about US$2,727 million. Major exports include clothing, transport equipment, basic manufactures, and machinery; principal imports are machinery, textiles, chemicals, raw materials, fuel, and food. Malta’s chief trading partners are Italy, the United Kingdom, the United States, and Germany.
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 no domestic energy sources. The economy is dependent on foreign trade, manufacturing (especially electronics and textiles), and tourism. Malta is privatizing state-controlled firms and liberalizing markets in order to prepare for membership in the European Union. The island remains divided politically, however, over the question of joining the EU. Continued sluggishness in the global economy is holding back exports, tourism, and overall growth.
Malta adopted the EURO on 1 January 2008.
GDP:
Purchasing power parity - $9.342 billion (2007 est.)
GDP - real growth rate:
3.4% (2007 est.)
GDP - per capita:
Purchasing power parity - $23,200 (2007 est.)
GDP - composition by sector:
Agriculture: 2.7%
Industry: 22.3%
Services: 74.9% (2003 est.)
Investment (gross fixed):
23.1% of GDP (2003)
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):
0.9% (2007 est.)
Labour force:
164,000 (2006 est.)
Labour force - by occupation:
Agriculture 3%, industry 22%, services 75% (2005 est.)
Unemployment rate:
6.8% (2005 est.)
Budget:
Revenues: € 2.368 billion
Expenditures: € 2.406 billion, including capital expenditures of N/A (est. 2007)
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.
Industrial production growth rate:
N/A
Electricity - production:
2.106 billion kWh (2005)
Electricity - consumption:
1.595 billion kWh (2005)
Electricity - exports:
0 kWh (2005)
Electricity - imports:
0 kWh (2005)
Oil - production:
0 bbl/day (2005 est.)
Oil - consumption:
18,600 bbl/day (2005 est.)
Oil - exports:
N/A (2005)
Oil - imports:
18,210 bbl/day (2004)
Current account balance:
€ -294 million (2007 est.)
Exports:
€ 2.431 billion f.o.b. (2007 est.)
Exports - commodities:
Machinery and transport equipment, manufactures.
Trade statistics:
The latest Maltese government statistics showed total global imports to the country (January - September 2005) at Lm1304 million. Lm941 million (72.2%) of this total is imported from the E.U; Lm73 million is imported from the U.S.A and Lm176 million from Asia. In same period Malta exported a total of Lm802 million, of which Lm121 million was to the USA, Lm180 million to Asia, primarily Singapore, Lm121 million to France, Lm91 million to Germany and Lm88 million to U.K.
The E.U. is Malta's leading export market with a total value of Maltese exports at Lm410 million. Of this European total 37.9% is exported to France, 23.9% to Germany, 15.13% to United Kingdom and 8.9% to Italy.
Exports - partners:
France 15.3%, Singapore 13.2%, US 13%, Germany 12.5%, UK 9.5%, Japan 4.9%, Hong Kong 4.2% (2006).
Imports:
€ 3.009 billion f.o.b. (2007 est.)
Imports - commodities:
Machinery and transport equipment, manufactured and semi-manufactured goods; food, drink, and tobacco.
Imports - partners:
Italy 28%, UK 10.5%, France 8.7%, Germany 7.6%, Singapore 6.8%, US 5.6% (2006).
Reserves of foreign exchange & gold:
€ 2.516 billion (2007)
Debt - external:
€ 135 million (2005)
Economic aid - recipient:
€ 4.4 million (2004)
Currency:
Maltese Lira (LM) (MTL)
Maltese Lira (Lm) = 100 cents (c) = 1000 mils.
Banknote denominations: Lm 20, 10, 5 & 2. Coins: Lm 1; 50, 25, 10, 5, 2 & 1 cents.
From 1st January 2008:
Euro (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:
MTL
From 1st January 2008: EUR
Exchange rates:
Maltese Liri per US Dollar - 0.3106 (2007)
Maltese Liri per Euro - 0.4293 (2007, fixed)
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 $14,053 (2006 figures) it is around 75% that of Germany, France and the UK.
Sovereign credit rating:
Moody’s A3
Standard + Poor’s AA-
Fitch IBCA AA-
