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Malta’s growth predicament: from frontrunner to laggard…and back?

Author(s): Ivan Ebejer (Directorate-General for Economic and Financial Affairs)

Malta’s growth predicament: from frontrunner to laggard…and back? pdf (95 kB) Choose translations of the previous link 

Malta’s remarkable economic dynamism in the second half of the 1980's and 1990's was interrupted in 2001 as a result of both internal and external factors. Since then, Malta seems to have been unable to engineer a sustainable recovery, in the process losing ground vis-à-vis other Member States. However, Malta has all the credentials to unleash its long-term growth potential – provided that appropriate action is taken to address the factors that hinder economic growth. This necessitates pursuing further fiscal consolidation while implementing comprehensive structural reforms. In particular, this calls for reforms aimed at raising employment, improving labour productivity by enhancing human capital, fostering business innovation and improving the business environment.

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(Country Focus 14. November 2006. Brussels. 8pp. Tab. free.)

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