The Central Bank of Malta revealed that inflation is expected to rise to 2.7% this year, which is up from 0.7% n 2021.
Unveiling the statistics in its Outlook for the Maltese Economy 2021-2024, the inflation will largely reflect the impact of import price pressures on all subcomponents of inflation except energy.
Import price pressures are however then forecasted to ease somewhat, with inflation set to decelerate to 1.8% by 2024. Malta’s gross domestic products are expected to grow by 6.0% in 2022, by 5.3% in 2023 and by 3.8% in 2024.
When compared to the Bank’s earlier projections, the level of GDP ‘is being revised upwards due to an estimated 1.2 percentage point higher growth in 2021. Pre-pandemic economic activity levels would thus have been attained earlier than projected in the Bank’s previous projections exercise.’
‘Consequently, the GDP growth rate for 2022 is being revised down by 0.5 percentage points. The domestic demand is expected to be the main driver of growth in 2022. This reflects strong growth in private and government consumption.
Employment growth is set to accelerate to 2.6% in 2022 in view of the continued growth in economic activity. It is then set to slow down in the following two years, with the unemployment rate set to stand at 3.5% by 2022. It will then return to 3.6% in 2023 and 2024.
General government deficit is expected to narrow over the remainder as COVID-19 measures unwind and macroeconomic conditions improve further. By 2024, it is expected to narrow to 3.3% of GDP. On its part, the general government debt-to-GDP ratio is projected to stand at 60.9% of GDP in 2024.
#MaltaDaily