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Economy and Banking Sector of Malta

National Currency

Euro (EUR)

Malta joined the Euro Area on 1 January 2008. The preceding national currency, Maltese lira (MTL), was replaced by Euro.

GDP

Nominal GDP (2019)
13.3 bln EUR  (+0.08%)
Nominal GDP per Capita (2019)
26,490 EUR  (+0.03%)
Real GDP Growth (2019)
4.7 %  (2018: 6.6 %)

According to Eurostat, nominal GDP of Malta in 2019 was 13.3 bln EUR.

Malta outperforms the European Union in terms of real GDP growth with the average annual differential coming to 2.8% over the past 10 years (2009 - 2019). In 2019 real GDP growth was 4.7% which was above the Euro Area average (1.2%) and above the European Union average (1.5%). Real GDP growth in 2020 - 2024 are IMF's estimates.

Real GDP Growth in Malta.

Chart 1. Real GDP Growth in Malta. Source: Eurostat, International Monetary Fund.

In 2019, nominal GDP per capita in Malta was 26,490 EUR.

Malta has an above-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, exceeded that of the European Union by 3.1% over the past 10 years (2008 - 2018). GDP per capita at PPP in 2019 - 2024 are IMF's estimates.

GDP Per Capita at Purchasing Power Parity in  Malta; European Union = 100.

Chart 2. GDP Per Capita at Purchasing Power Parity in Malta; European Union = 100.

Inflation Rate

CPI, MoM (May 2020)
1.2 %  (Apr 2020: 2.9 %)
CPI, YoY (May 2020)
0.9 %  (Apr 2020: 1.1 %)
CPI, Year Average (2019)
1.5 %  (2018: 1.7 %)

According to Eurostat, inflation rate in Malta in 2019 expressed as annual percentages of average consumer prices was 1.5% which was above the Euro Area average (1.2%) and equal to the European Union average (1.5%). Inflation rates in 2020 - 2024 are IMF's estimates.

Inflation Rate in Malta.

Chart 3. Inflation Rate in Malta. Source: Eurostat, International Monetary Fund.

Unemployment Rate

Unemployment Rate (2019)
3.4 %  (2018: 3.7 %)

According to Eurostat, unemployment rate in Malta in 2019 was 3.4% which was below the Euro Area average (7.6%) and below the European Union average (6.3%). Unemployment rates in 2020 - 2024 are IMF's estimates.

Unemployment Rate in Malta.

Chart 4. Unemployment Rate in Malta. Source: Eurostat, International Monetary Fund.

Government Bond Yield

Government Bond Yield (Apr 2020)
0.57 %  (Mar 2020: 0.40 %)

According to Eurostat, government bond yield in Malta in April 2020 was 0.57%, compared to 0.40% in March 2020.

Government bond yield of Malta.

Chart 5. Government bond yield of Malta. Source: Eurostat.

Credit Ratings (as of Aug 2020)

Fitch
A+ (high credit quality), outlook stable
Moody's
A2 (upper medium grade), outlook stable
Scope
A+ (upper medium grade), outlook stable

Malta has sovereign credit ratings assigned by American credit rating agencies Fitch and Moody's: the rating set by Fitch is A+ (high credit quality), outlook stable; the rating set by Moody's is A2 (upper medium grade), outlook stable. Scope Ratings, the European rating agency, rated Malta as A+ (upper medium grade), outlook stable.

Fitch and Moody's rating data are provided for June 2020, Scope Ratings for August 2020.