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| Currency | Euro (EUR, €)[note 1] |
|---|---|
| Calendar year | |
Trade organisations | EU,WTO and theOSCE |
Country group | |
| Statistics | |
| Population |  514,564 (1 January 2020)[3] |
| GDP | |
| GDP rank | |
GDP growth |
|
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
Population belowpoverty line |
|
 28.0low (2019,Eurostat)[8] | |
| |
 55 out of 100 points (2023)[10] (51st) | |
Labour force | |
Labour force by occupation |
|
| Unemployment | |
Average gross salary | €1,829 monthly (Q3 2023)[16] |
| €1,416 monthly (Q3 2023)[16] | |
Main industries | Tourism, electronics, ship building and repair, construction, food and beverages, pharmaceuticals, footwear, clothing, tobacco, aviation services, financial services, information technology services |
| External | |
| Exports | $4.87 billion (2022 est.) |
Export goods | Machinery and mechanical appliances, mineral fuels, oils and products, pharmaceutical products, printed books and newspapers, aircraft and parts, toys, games and sports equipment |
Main export partners | |
| Imports | $15.7 billion (2022 est.) |
Import goods | Mineral fuels, oils and products, electrical machinery, aircraft and parts, machinery and mechanical appliances, plastic and other semi-manufactured goods, vehicles and parts |
Main import partners | |
FDI stock | $2.03 billion (2017)[18] |
Grossexternal debt | $5.241 billion (2013 est.)[19] |
| Public finances | |
| $928 million (October 2020) | |
| Revenues | 6,481 billion 33.4% of GDP (2023)[20] |
| Expenses | 7,431 billion 38.3% of GDP (2023)[20] |
| Economic aid |
|
All values, unless otherwise stated, are inUS dollars. | |
Theeconomy of Malta is a highly industrialised service-based economy. It is classified as anadvanced economy by theInternational Monetary Fund[27] and is considered ahigh-income country by theWorld Bank[28] and an innovation-driven economy by theWorld Economic Forum.[29] It is a member of theEuropean Union and of theeurozone, having formally adopted the euro on 1 January 2008.[30]
The strengths ofMalta's economy are its advantageous location, being situated in the middle of theMediterranean Sea at a crossroads between Europe,North Africa and theMiddle East, its fully developed openmarket economy,multilingual population (88% of Maltese people speak English),[31] productivelabour force, low corporate tax[32] and well developed finance and ICT clusters. The economy is dependent on foreign trade, manufacturing (especially electronics),tourism and other services in the tertiary sector of the economy. In 2014, over 1.7 million tourists visited the island.[33]
Malta'sGDP per capita in 2024, adjusted bypurchasing power parity, stood at $67,682[4] and ranked 15th in the list of EU countries in terms of purchasing power standard.[34] In the 2013 calendar year, Malta recorded a budget deficit of 2.7%,[35] which is within the limits for eurozone countries imposed by theMaastricht criteria, and Government gross debt of 69.8%.[36] At 5.9%, Malta had the sixth-lowest unemployment rate in the EU in 2015.[37]
Malta is the 33rd-most democratic country in the world according to theEconomist Intelligence Unit'sDemocracy Index with an upper-middle score on V-Dem'sDemocracy Indices.
Malta has an airport,Luqa International Airport, and two majors ports,Malta Freeport and Valletta Cruise Port. Malta Freeport is used for all cargo ships and imports-exports while Valletta Cruise Port is only used by cruise ships. The Malta Freeport reported revenues of 170 million euros, while €90 million came from the Valletta Cruise Port, totaling €260 million. The Freeport connects Malta with 110 others ports in the world including 55 in the Mediterranean. Furthermore, 2,189 container ships carried 2.80 million TEU of container traffic in and out of Malta Freeport in 2022. The Valletta Cruise Port welcomed 900,000 passengers in 2023, contributing €53 million to the Maltese economy.
Luqa International Airport serves 35 different airlines with 115 destinations. In 2023, 7.8 million people travelled through the airport, providing $2.7 billion in revenues to the Maltese economy, equivalent to 24% of Malta's Gross Domestic Product (GDP). Specifically, the former air flag carrier of MaltaAir Malta,KM Malta Airlines since 2024, had a revenue of €679.4 million in 2022. Another new airline operating from Luqa Airport,Universal Air, started operations in April 2024 with a fleet of 6 aircraft. The airlines, airport, and surrounding businesses employ almost 7,000 people.
In the mid-thirteenth century, Abate Giliberto indicated that the population of the Maltese islands consisted of 1,119 families.[38] At the time, Maltese agriculture transitioned fromsubsistence agriculture to a more commerce-based one through the cultivation for export ofcotton andcumin, which were introduced during theArab period.[39] As a result, there was a need to import food from neighbouringSicily. Eventually, in the late fourteenth century, cotton production became the principal agricultural product in the archipelago, since it was one of the few production hubs in thewestern Mediterranean. Processing cotton to weave it into the fabric was a labour-intensive activity, so the boost in cotton trade led to the population surging to 33,000.[38][39] In an exploratory mission in 1524, theKnights of St. John noted how the islands were dependent on grain imports since agriculture was dedicated to the production of cotton, honey and cumin.[40]
During theNapoleonic Wars (1800–1815), Malta's economy prospered and became the focal point of a major trading system. In 1808, two-thirds of the cargo consigned from Malta went toLevant andEgypt. Later, one half of the cargo was usually destined forTrieste. Cargo consisted of largely British and colonial-manufactured goods. Malta's economy became prosperous from this trade and many artisans, such as weavers, found new jobs in the port industry.
In 1820, during theBattle of Navarino, which took place inGreece, the British fleet was based in Malta. In 1839,P&O andEast India Company used Malta as a calling port on their Egypt and Levant runs.
In 1869, the opening of theSuez Canal benefited Malta's economy greatly as there was a massive increase in the shipping which entered in the port. The economy had entered a special phase. TheMediterranean Sea became the "world highway of trade" and a number of ships called at Malta forcoal and various supplies on their way to theIndian Ocean and theFar East. From 1871 to 1881, about 8,000 workers found jobs in the Malta docks and a number of banks opened in Malta. By 1882, Malta reached the height of its prosperity.
However, the boom did not last long. By the end of the 19th century, the economy began declining and by the 1940s, Malta's economy was in serious crisis. This was primarily due to the invention of large ships which had become oil-fired and therefore had no need to stop in the Grand Harbor of Malta to refuel. The British Government had to extend the dockyard.
At the end ofWorld War II, Malta's strategic importance had reached a low point. Modern air warfare technology and the invention of theatomic bomb had changed the importance of the military base. The British lost control of theSuez Canal and withdrew from the naval dockyard, transforming it for commercial shipbuilding and ship repair purposes.
The Maltese economy is dependent on foreign trade, manufacturing (especially electronics and pharmaceuticals), and tourism. Malta adopted theEuro currency on 1 January 2008.
Tourist arrivals and foreign exchange earnings derived from tourism have steadily increased since 1987.[41] Following theSeptember 11 attacks, the tourist industry suffered a temporary setback. With the help of a favorable international economic climate, the availability of domestic resources, and industrial policies that support foreign export-oriented investment, the economy has been able to sustain a period of rapid growth.[citation needed] Growing public and private sector demand forcredit has led — in the context of interest rate controls — tocredit rationing to the private sector and the introduction of non-interest charges by banks. Despite these pressures, consumer priceinflation has remained low (2.2% according to the Central Bank of Malta in 2007), reflecting the impact of a fixed exchange rate policy (100% hard peg to the euro, in preparation for currency changeover) and lingeringprice controls.
There is a strong manufacturing base for high value-added products likeelectronics andpharmaceuticals, and the manufacturing sector has more than 250 foreign-owned, export-oriented enterprises. Tourism generates around 15% of GDP.Film production in Malta is another growing industry (approx. 35 million euros between 1997 and 2011), despite stiff competition from other film locations inEastern Europe andNorth Africa, with the Malta Film Commission providing support services to foreign film companies for the production offeature cinema, commercials and television series.[42]
From 2001 to 2005 the mean GDP real growth was 0.4%[43] due to Malta losing pace in tourism and other industries. Unemployment was down to 4.4%, its lowest level in 3 years. Many formerly state-owned companies are being privatised—and the market liberalised.
Fiscal policy has been directed toward bringing down the budget deficit after public debt grew from a negative figure in 1988 to 56% in 1999 and 69.1% in 2009.[44] By 2007, the deficit-to-GDP ratio was comfortably below 3% as required foreurozone membership, but due to pre-election spending has gone up to 4.4% in 2008 and 3.8% in 2009.[44]
 | This article needs to beupdated. Please help update this article to reflect recent events or newly available information.(January 2014) |
Despite a great potential for solar and wind power,[45] Malta produces almost all its electricity from oil, importing 100% of it.[46] Energy and the cost of energy, which is oft-quoted as the highest in Europe, was a key issue in the 2013 election.[47]
| Sector | Average annual employment | Average annual earnings per capita in euros |
|---|---|---|
| Food and beverages; tobacco | 2,873 | 13,441 |
| Textiles and textile products | 422 | 15,512 |
| Wearing apparel and clothes | 733 | 11,698 |
| Leather and leather products | 185 | 9,308 |
| Wood and wood products | 78 | 12,000 |
| Paper and paper products | 265 | 15,698 |
| Publishing and printing | 1,669 | 17,615 |
| Chemicals and chemical products | 1,038 | 19,052 |
| Rubber and plastic products | 1,578 | 15,254 |
| Other non-metallic mineral products | 766 | 11,928 |
| Fabricated metal products | 596 | 14,451 |
| Machinery and equipment n.e.c. | 446 | 13,518 |
| Electrical machinery and apparatus | 1,409 | 16,515 |
| Radio, TV and communication equipment | 3,168 | 18,673 |
| Medical, precision and optical instruments | 877 | 15,582 |
| Motor vehicles, trailers and semitrailers | 50 | 10,220 |
| Other transport equipment | 258 | 20,938 |
| Furniture and manufacturing n.e.c. | 1,597 | 15,753 |
| Total | 18,008 | 15,812 |
| Rank | Company | Founded | Market % |
|---|---|---|---|
| 1 | Bank of Valletta | 1974 | 44.67 % |
| 2 | HSBC Bank Malta p.l.c. | 1999 | 20.48 % |
| 3 | APS BANK P.L.C. | 1910 | 8.41 % |
| 4 | MeDirect Bank (Malta) plc | 2004 | 6.87 % |
| 5 | FIMBank plc | 1995 | 5.70 % |
| 6 | Lombard Bank Malta plc | 1955 | 3.85 % |
| 7 | BNF Bank plc | 2008 | 3.13 % |
Agriculture constitutes a relatively small proportion of the GDP of Malta, at around 0.7%.[50] The country produces a diverse range of crops, including potatoes, olives, and tomatoes.[51] Animal livestock within Malta include cattle, goat, pigs and poultry.[52]
| This article needs to beupdated. Please help update this article to reflect recent events or newly available information.(January 2014) |
Electricity - production:1,620 GWh (1998)
Electricity - production by source:
fossil fuel:98.6%
hydro:0%
nuclear:0%
Renewable sources:1.4%
other:0% (1998)
Electricity - consumption:1,507 GWh (1998)
Electricity - exports:0 kWh (1998)
Electricity - imports:0 kWh (1998)
Agriculture - products:potatoes, cauliflower, grapes, wheat, barley, tomatoes, citrus,cut flowers, green peppers; pork, milk, poultry, eggs
Currency:1 euro = 100 cents since 1 January 2008
previously 1 Maltese lira = 100 cents;
Exchange rates:Maltese liri (LM) per US$1 – 0.4086 (January 2000), 0.3994 (1999), 0.3885 (1998), 0.3857 (1997), 0.3604 (1996), 0.3529 (1995)Irrevocably fixed conversion rate to the euro: Maltese liri (LM) per EUR1 - 0.4293 (2007)
According to HitHorizons, companies registered in Malta generate €88,255,174,701 in sales per annum. The company with the highest sales is ALKAGESTA LTD with €2.075B followed by HC TRADING MALTA LIMITED and ADVAITA TRADE PRIVATE LIMITED with €1.346B and €1.253B in sales respectively.[54]
Poverty and social exclusion are significant problems in Malta.[55] As of 2008, an estimate of 15% of Malta's citizens were living below the poverty line, which was slightly better than the EU average of 17% at the time.[56] To address the issue of poverty, on 24 December 2014 Malta addressed poverty in the six branches of social services, health and environment, culture, income and social benefits, education and employment, by unveiling the National Strategic Policy for Poverty Reduction and Social Inclusion; this will stay in effect from 2014 to 2024.[57] Under this policy, stakeholders will be involved in the discussion of how to reduce hardships experienced by families living in Malta.[58]
Benefits for unemployment are given out based on contributory and non-contributory schemes. Contributory schemes distribute unemployment benefits within 50 weeks of contribution. Non-contributory schemes a Social Unemployment Benefit is granted after a means test to the head of a household. In order to qualify for unemployment benefits, a person must be able to do work and have registered as unemployed.[59]
There are three categories to the Malta registrar of unemployment. People who have never worked fall into category one. Those who quit or were dismissed from their jobs fall into category two. Category three is for people who are currently employed but are looking for other job prospects. Benefits for unemployment are given for 156 days after which a person may qualify for the means tested unemployment assistance.[60] People eligible for unemployment benefits are Maltese citizens who are aged sixteen years or older, people signed up for eligible work-study programs, and citizens outside of Malta who are employed by foreign entities.[61]
Some scholars have noted that Malta's unemployment system has created a dependency on the benefits provided by the system.[62] From 1992 to 2005, there was an increase in the number of recipients of both short-term and long-term benefits.[62] Additionally, in 2016, 969 Maltese citizens were cut off the employment register for abusing the system.[63] For these reasons, there has been movements from politicians to reduce and reshape the unemployment system. After the election of the Labour Party in 2013, the number of people receiving unemployment benefits dropped by 75%.[64] This same government introduced the "in-work" benefit which forces more people to work while helping the most poor and desperate.[64]
In order to be eligible for in-work benefit, applicants must first have children under the age of 23, and from that point, benefits vary depending on marital status and the number of people employed per family. For a single parent in employment who earns between €6,600-€16,500, they are eligible for a maximum payable rate of up to €1,250 annually per child. For a married couple whose collective income is between €10,000 and is less than €24,000 (the income of one of the spouses must be over €3,000), they are eligible for a maximum payment rate of up to €1,200 annually per child.[65] In 2016, the in-work benefit was extended to married couples where only one parent works, extending the benefit to an additional 3,700 families.[66] For a married couple with only one parent gainfully employed whose income is greater than €6,600 and less than €16,500, they are eligible for a maximum payable rate of up to €350 yearly per child.[65] The in-work benefit is paid quarterly in January, April, July, and October.[67]
At 42.3% in 2017, female workforce participation rate in Malta is relatively low.[68] For over half of Maltese women who stay out of the workforce altogether, they do not receive direct unemployment benefits. Rather, most unemployment benefits are given to men because to receive unemployment benefits, one must first be employed.[62] However, because older women tend to stay out of the workforce, those women who do participate in the workforce tend to be younger and have higher levels of education. This has led to a lower long-term unemployment rate amongst women than men. In 2011, the long-term unemployment rate of women was 2.5% while the long-term unemployment rate of men was 3.3%.[69]
Malta has public and private pension systems. There are two types of contributions for the public pension system: class one and class two. Employed people contribute to class one and those are self-employed contribute to class two.[70] There was a gradual increase in pension age in Malta in the 1950s and 1960s; for example, someone who was born in 1953 needs to be 62 years old in order to collect pensions while another person born in 1960 would have to be 64 years old in order to collect pensions.[71] Another requirement to qualify for a Malta pension program is that a person must have been contributing to the program for a certain time period or they will not be eligible.[72] In Malta there is a state Malta Retirement Programme for foreign pensioners. According to the programme, a foreigner whose income is more than 75% from pension payments, can receive a residence permit in the country and a special tax status.[73]
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See also:Potential enlargement andFormer members | ||
