Economy of Malta

The economy of Malta is a strong service-based economy. It is called an advanced economy by the International Monetary Fund and is a high-income country by the World Bank. Malta joined the European Union in 2008 and started using the euro currency that year.

Malta has many strengths in its economy. Its spot in the middle of the Mediterranean Sea makes it a link between Europe, North Africa and the Middle East. The country has an open market economy and many people speak English. It also has low taxes for businesses and strong finance and technology areas. The economy relies on trade, especially in electronics, tourism, and services.

In 2024, Malta’s GDP per person was $67,682, ranking 15th in the EU. In 2015, Malta had a low unemployment rate, placing it sixth among EU countries. The country is also seen as one of the more democratic places in the world.

Transport

Malta has an airport called Luqa International Airport and two major ports: Malta Freeport and Valletta Cruise Port. The Malta Freeport handles cargo ships, and the Valletta Cruise Port is for cruise ships.

Luqa International Airport serves many airlines and destinations. In 2023, millions of people traveled through the airport, which helped Malta's economy. One of Malta’s airlines, KM Malta Airlines (formerly Air Malta), and a newer airline, Universal Air, also operate from this airport. These airlines provide jobs for many people.

History

In the 1200s, the people of Malta grew cotton and cumin to sell to other countries. This helped them have more jobs and grow. Later, during wars in the 1800s, Malta became a busy place for ships carrying goods.

When the Suez Canal opened in 1869, many ships stopped at Malta for coal and supplies. This brought more jobs and growth. But later, bigger ships that used oil instead of coal did not need Malta, which caused problems. After World War II, Malta’s importance changed with new technology.

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Modern economy

The economy of Malta depends on trading with other countries, making things like electronics and medicines, and welcoming tourists. Malta started using the Euro currency on January 1, 2008.

Tourism has grown a lot since 1987, even though it faced a small drop after the September 11 attacks. With good economic conditions and support for businesses that sell things to other countries, Malta’s economy has grown quickly. Even with some challenges, prices have stayed steady. Malta is good at making high-value products like electronics and medicines, and many foreign companies operate there. Tourism helps make up about 15% of Malta’s total money. Making films is also becoming more popular in Malta.

From 2001 to 2005, Malta’s economy grew very slowly because tourism and other industries were not doing as well. Many companies that used to be owned by the government are now being sold to private buyers, and the market is becoming more open.

Energy

Main article: Energy in Malta

Even though Malta has good potential for solar and wind power, it gets almost all its electricity from oil that it imports. The high cost of energy was a big topic in the 2013 election.

Industry

Banking

Main article: List of banks in Malta

Agriculture

Main article: Agriculture in Malta

Farming is a small part of Malta’s economy. Malta grows many different crops, such as potatoes, olives, and tomatoes. The country also raises animals like cows, goats, pigs, and chickens.

Statistics

Malta made about 1,620 GWh of electricity in 1998, mostly from fuels. It used around 1,507 GWh that year and did not send or receive any electricity from other places.

The country grew foods like potatoes, cauliflower, grapes, wheat, barley, tomatoes, citrus, cut flowers, green peppers, pork, milk, poultry, and eggs. Since January 1, 2008, Malta has used the euro as its money, with 1 euro equal to 100 cents.

Companies

Companies in Malta sell many things each year. The biggest company is called ALKAGESTA LTD. Other large companies are HC TRADING MALTA LIMITED and ADVAITA TRADE PRIVATE LIMITED.

Poverty

Poverty and social exclusion are important issues in Malta. In 2008, about 15% of people in Malta lived below the poverty line.

On December 24, 2014, Malta introduced a National Strategic Policy for Poverty Reduction and Social Inclusion to help families in need. This policy covers areas like social services, health, education, and employment. Many groups will work together to support families facing hardships in Malta.

Unemployment system

Unemployment benefits in Malta are given in two ways: based on past work or through a test for the head of a household. To get these benefits, a person must be able to work and have registered as unemployed.

There are three groups in the Malta registrar of unemployment. The first group includes people who have never worked. The second group is for those who left or lost their jobs. The third group is for people who are working but looking for other jobs. Benefits are paid for 156 days, after which people may qualify for further assistance based on their financial situation. People eligible for unemployment benefits include Maltese citizens aged sixteen or older, those in eligible work-study programs, and citizens outside Malta working for foreign companies.

The system has been adjusted over time to encourage more people to work. After changes in 2013, the number of people receiving unemployment benefits dropped. A new "in-work" benefit was introduced to help families with children, with payments depending on income and family situation. This benefit is paid four times a year.

The rate of women participating in the workforce in Malta is lower than men’s. Many women who do not work do not receive unemployment benefits because these benefits usually require prior employment. However, women who are in the workforce tend to be younger and more educated, which helps keep the long-term unemployment rate for women lower than for men.

Pensions system

Malta has public and private pension systems. People who have jobs contribute to one type of pension. Those who work for themselves contribute to another type. The age at which people can start getting pensions has changed over time. For example, someone born in 1953 could start getting pensions at age 62, while someone born in 1960 had to wait until age 64. To get a pension in Malta, a person needs to have contributed to the system for a certain number of years.

There is also a special program for foreign pensioners. If a person's income comes mostly from pensions, they can live in Malta and get a special tax status.