The Maltese economy is set to continue to grow this year and in 2012, although at a more moderate pace than the strong 3.7 per cent of GDP rebound experienced in 2010.
According to the 'Spring Economic Forecasts' issued by the European Commission in Brussels this morning, the main indicators of the Maltese economy are expected to remain positive in the next two years.
The Commission forecast a GDP growth of 2 per cent and 2.2 per cent in 2011 and 2012, respectively, and said growth in imports and exports was set to continue.
Brussels also predicted a continued growth in employment, keeping Malta with a one of the lowest unemployment rates in the EU.
With regards to public finances, the Commission also forecast a continued improvement, with the island expected to bring down the deficit to three per cent of GDP (3.7 per cent in 2010) by the end of this year, in line with EU rules. Debt levels are expected to remain unchanged.
On the other hand, Brussels said that inflation in Malta is expected to remain higher than the euroarea's average, reaching 2.7 per cent this year and falling to 2.2 per cent in 2012.