E a c k

In its 2023 Country Report about Malta, the European Commission said that it acknowledged the progress Malta has made in implementing the plan for its rapid recovery and resilience since the COVID-19 crisis and appears resilient overall While maintaining its growth momentum in an uncertain environment, its economy has returned to robust economic growth

It also identifies areas where more needs to be done, including more renewable energy consumption, road emissions reduction, and tax system reforms

Analysing Malta's economic performance, the European Commission said that despite the uncertain climate overseas, its economic growth will continue this year and in 2024, albeit slower This year's real GDP growth is forecast to moderate to 3 9% (from 6 9% in 2022), following a broader economic slowdown in Malta's main trading partners, and in 2024, growth is expected to climb slightly to 4.1%.

It notes that inflation in 2022 reached 6.1%, less than in most EU Member States, because energy prices are currently being kept at 2020 levels by government intervention and that the Maltese authorities have announced that they will continue to limit energy prices in 2023 and 2024

Regarding Malta's employment, the EC said that the rate in the second half of 2021 surpassed pre-pandemic levels and improved in 2022 The labour market has remained robust, although women and people with disabilities still experience some difficulties in the labour market

The EC report states that Malta has been experiencing shortages of skilled labour for several years and has a large share of low-skilled adults, while the social situation has remained broadly stable but needs monitoring for specific groups

Turning to the government deficit, this is set to decrease but remains one of the highest in the EU

The report states that with Malta highly dependent on energy imports, its economic growth risks being environmentally unsustainable, the report states Malta has one of the lowest 2030 targets (11 5%) for renewables in energy consumption in the EU However, the Government's commitment in