With the world recovering from the disruptions and economic-halting restrictions stemming from the global fight against the COVID-19 pandemic, policy-makers around the world are working towards creating and adopting polices that cultivate economic re-generation as well as stimulate investment in various sectors in a bid to restart the economy and world-wide trade. On Monday 11th October 2021, Minister of Finance Clyde Caruana announced various key measures as part of the upcoming year's budget to address Malta's part in restarting trade and alleviate the country's economy.
2021 - An Overview
Malta is expecting an increase in its deficit which is expected to be around 11% of its GDP, which is expected to stand around €13.9 billion.
Debt is set to increase to 61.3% of the country's GDP by the end of 2021.
Unemployment rate stood below the EU's average by 3.6%, and stood at 3.2% as opposed to the average of 6.8%.
Tourism figures continued to slow down with the total inbound tourist up to July 2021 standing at 261k as opposed to the 419k seen within the same period in 2020 and the 1.5m for 2019.
The 12-month moving average inflation rate in August 2021 stood at 0.2%.
2022 - A Forecast
A reduction in deficit is expected, with the figure lowering to a 5.6% of the GDP from the 11% of 2021.
Weekly cost of living adjustment (COLA) is set to remain the same as last year at €1.75.
Various benefits listed hereunder aim to shift the country's economy to a more greener one as well as help vulnerable people and pensioners.
Income & Other Taxes
Sustainability and Environmental Measures