1. ECONOMIC HIGHLIGHTS
1.1 ECONOMIC OUTLOOK
On the 24th of October 2022, Finance Minister Clyde Caruana
presented the budget measures for 2023. During his speech, the
Minister highlighted the global challenges which Malta faces, in
particular the war in Ukraine and rising prices.
Malta's economy is forecasted to grow at 3.5% in 2023,
outpacing the EU average, but marking the slowest rate of GDP
growth in more than a decade. Private consumption is expected to
rise around 4%.
The Government is expecting that inflation will stand at an
average of 5.7% in 2022 and then it will decline to an average of
3.7% in 2023.
Malta's debt currently stands at 57% (or a national debt of
€8.3 billion) of the country's GDP and this debt is
forecasted to increase to 59.1% in 2023. The Government is
expecting that the deficit will remain stable at 5.8% for 2022,
before decreasing to 5.5% in 2023. The Government's plan is to
keep the debt-to-GDP ratio close to, or below 60%
