February 17, 2023

The International Monetary Fund (IMF) has recently issued a report in relation to Malta's economic update, highlighting the status and main indicators of its economy within the international scenario. Notwithstanding the worst economic downtrend in decades due to the Covid-19 pandemic, the IMF report states that Malta's economic recovery has been remarkably strong.

With the easing of pandemic containment measures, together with strong net exports and private consumption, output grew by more than 11% in 2021 and the economy has continued to increase for the whole of 2022.

Inflation has picked up but has remained the lowest in the eurozone, reflecting the effective measures adopted by the government. For 2023, the indirect impact of the war in Ukraine, together with the confluence of global shocks will weigh on the outlook of the GDP growth, which is expected to reach 3.3%, a figure significantly higher if compared with the growth projections of the Eurozone which is 0.7%.

Notwithstanding the geopolitical risks and inflationary pressures, the Maltese economy has proved to be resilient and remained sound with ample capital and liquidity buffers. The system remains also vigilant in monitoring risks, particularly after the decision taken by the Financial Action Task Force (FATF) to remove Malta from the 'grey list' in 2022, enhancing the reputation of the Maltese jurisdiction.