Malta's Economic Growth Forecasted to Slow Down in Coming Years, Central Bank Warns

According to the Central Bank's latest projections, Malta's GDP growth rate is expected to decline from 7.0% in 2022 to 4.0% in 2023.

The downward trend is predicted to continue, with projected growth rates of 3.8% in 2024 and 3.7% in 2025.

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Revised upward from earlier forecasts, the current GDP growth prediction shows an increase of 0.3 percentage points in 2023 and 0.2 percentage points in both 2024 and 2025.

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Net exports are expected to be the primary contributor to GDP growth in 2023.

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The decline in imports, especially goods imports previously boosted by aviation sector investments, along with robust export growth, is anticipated to drive this performance.

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Conversely, domestic demand is predicted to have a negative impact on growth due to high investment in 2022, setting a high base for comparison.

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Are economic hardships on the horizon for Malta? Let's explore the potential implications of these projections.

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While the projections raise concerns, it's important to note that Malta is still expected to maintain positive economic growth, albeit at a slower pace.

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