Main Driver of the Recovery Coming from Investment – Commission Economic Forecast
The Ministry for Finance and Financial Services welcomes the 2020 Summer Economic Forecast published Tuesday 7th July 2020 by the European Commission which expects Malta to record the least negative economic growth in the Euro Area (EA) this year. As for next year, the growth rate is expected to be higher than the EU and EA average.
The European Commission notes that, although the disease and containment measures taken by the Government to contain the spread of COVID-19 has had a negative impact on growth, the numerous financial aid packages provided by the Government are expected to help cushion the economic impact.
Additionally, the economic fall in output is expected to be fully recovered next year as real GDP growth is expected to rise to 6.3 per cent, thus exceeding the EU and EA averages.
Inflation is expected to decrease 0.8 percent in 2020 and remain at a relatively low level of 1.2 per cent in 2021.
Minister for Finance and Financial Services Edward Scicluna said: “I am pleased to note that the European Commission sees the main driver of the recovery coming from investment, supported by the recovery packages announced by the Government. Net exports are also expected to contribute significantly to the rebound as global trade gradually normalises.”