Malta Budget Highlights 2022

The local economy is expected to register a deficit of around 11.1% of the GDP for 2021 and partially recover from the contraction onset by the COVID-19 pandemic with a forecasted deficit of around 5.6% of the GDP for 2022. GDP is expected to grow in real terms by around 6.5% in 2022. Government debt is forecasted to increase to approximately 61.3% of the GDP by the end of 2021 and 61.8% in 2022.

Figures published by Eurostat, the statistical office of the European Union as at August 2021 show that the euro area seasonally-adjusted unemployment rate has reached 7.5% whilst the EU unemployment rate reached 6.8%. Malta’s unemployment rate as at August 2021 stood at 3.2%.

The forecast for inflation this year and next year has also been revised upwards following rising energy and commodity prices and production bottlenecks which are expected to put upward pressure on consumer prices. Figures published by Eurostat, the statistical office of the European Union as at September 2021 show that the euro area annual inflation rate was 3.4% whilst the EU annual inflation rate was 3.6%. Malta’s annual inflation rate was 0.7% as at September 2021 and is forecasted to reach 1.6% in 2022.

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