Docstoc

Malta

Document Sample
Malta Powered By Docstoc
					Malta
Headline news: Maltese economy set to slow

A forecast released by the European Commission expects the Maltese economy to slow in the next two
years. The island’s deficit is also expected to increase; this comes at the same time that the government
is forecasting to bring it down to below three per cent of GDP by the end of this year. Debt will inevitably
follow suit. Indeed, the island’s debt, which currently stands at 69.6 per cent of GDP this year, is expected
to rise to 70.8 per cent in 2012.

However, GDP is expected to keep growing modestly by 2.1% this year and 1.3% in 2012, this is well
above the 0.5% being forecast for the euro area. The Commission is also expecting more exports,
growing by 4.5% this year and 3.9% in 2012, along with a 1% increase in employment this year and 0.8%
in 2012. Unemployment should be stable at about 6.8% in 2012 against 10.1% in the euro area.

http://www.timesofmalta.com/articles/view/20111111/local/Economy-heads-for-a-slowdown.393279

Key Data:

GDP Per Capita (PPP)                                   23,662.14
GDP Growth                                             2.1%
Unemployment                                           7.3% (2nd Quarter 2011)
Inflation                                              2.7%
Interest Rate
Exchange Rate ($)
10 Year Bond Yield
Imports
Exports
Balance of payments
http://www.independent.com.mt/news.asp?newsitemid=135144

http://www.tradingeconomics.com/malta/indicators

http://www.timesofmalta.com/articles/view/20111014/local/inflation.389143

Contextual data:

    -   Manufacturing output
    -   Manufacturing PMI
    -   Business confidence



Stories behind the figures:


       Maltese deficit expected to grow: The deficit is expected to grow, right when the government is
        forecasting to bring it down to below three per cent of GDP by the end of this year. Debt will
        inevitably follow suit. http://www.timesofmalta.com/articles/view/20111111/local/Economy-
        heads-for-a-slowdown.393279
   Modest GDP growth predicted: The GDP is expected to keep growing modestly by 2.1 per cent
    this year and 1.3 per cent in 2012, well above the 0.5 per cent being forecast for the euro area.
    http://www.timesofmalta.com/articles/view/20111111/local/Economy-heads-for-a-
    slowdown.393279

   Exports expected to grow: Exports are predicted to grow by 4.5 per cent this year and 3.9 in
    2012, along with. http://www.timesofmalta.com/articles/view/20111111/local/Economy-
    heads-for-a-slowdown.393279

   Unemployment level to stabilize: A one per cent increase in employment this year and 0.8 per
    cent in 2012 is expected. Unemployment should be stable at about 6.8 per cent in 2012 against
    10.1 per cent in the euro area.
    http://www.timesofmalta.com/articles/view/20111111/local/Economy-heads-for-a-
    slowdown.393279

   Inflation to slow in 2012: The report, which is always based on conservative estimates, says
    that, while inflation is expected to slow down to 2.2 per cent in 2012 from 2.6 per cent this year,
    it is still expected to be higher than the 1.7 per cent forecast for the euro area.
    http://www.timesofmalta.com/articles/view/20111111/local/Economy-heads-for-a-
    slowdown.393279

   Maltese debt to increase: The same forecast is being made for the island’s debt, which from
    69.6 per cent of GDP this year is expected to rise to 70.8 per cent in 2012.The biggest risk to the
    country’s financial stability comes from Air Malta and the recent disbursements to help Greece,
    according to the European Commission.
    http://www.timesofmalta.com/articles/view/20111111/local/Economy-heads-for-a-
    slowdown.393279

   Malta’s general government gross debt to increase: General government gross debt increased
    by 6.8 per cent between 2008 and 2010 to 69 per cent of GDP and is forecast to rise marginally
    to 69.6 per cent of GDP this year.
    http://www.timesofmalta.com/articles/view/20111111/local/Economy-heads-for-a-
    slowdown.393279

   Malta warned over public finances: European countries who fail to control their debt and
    deficit levels and do not will face sanctions next month under new EU budget rules. Malta is one
    of the countries who may be hit with these sanctions. Their economic growth forecast for 2012
    was cut to 1.3% from 2.2%. This year’s forecast was raised slightly to from 2% to 2.1%.
    http://www.independent.com.mt/news.asp?newsitemid=135144

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:0
posted:2/16/2012
language:
pages:2