Country Economic Forecasts > Malta

After GDP grew a spectacular 6.4% in 2015, the fastest in two decades, the economy remained strong at the start of 2016. Although GDP growth moderated to 0.3% quarterly expansion in Q1, it was still a strong 4.9% in annual terms, keeping Malta as one of the fastest-growing economies in the Eurozone. But as 2015 growth was partially boosted by a one-off 42.5% surge in investment surge related to the construction of a power plant, we see economic growth moderating gradually as capital spending slows to more sustainable levels. That said, at an expected 3.5% this year and 2.7% in 2017, it will remain well above the Eurozone average. Further ahead, we expect growth of 2.5% a year in 2018-19.Unemployment has fallen below 5%, less than half the Eurozone average, and tourism a key industry maintains solid momentum, which underpins our positive forecast, although the sharp sterling depreciation following the Brexit vote may have an impact on arrival figures.