Maltese businesses seem to be looking very positively at next year, according to a new survey conducted by Eurochambres, which represents the 27 chambers of commerce across the EU. Local firms are confident the economic crisis is over and 2011 will be a good year.
According to the survey, in which 202 Maltese companies, both small and medium sized, took part, expectations for 2011 are higher than the EU average in all areas including investment, employment, exports and confidence.
“Positive sentiments and results are indicated in the manufacturing sector; this is especially so for 2011 with the net positive balance in all sectors being quite high, except for the ‘national sales’ category which still records a negative balance,” the report accompanying the survey’s results states.
“Indeed, at times the feeling is that the projected outcome is ‘too positive’”, the author comments.
With regards to the services sector, an important pillar of the Maltese economy, the survey’s results are also very optimistic.
“The results are positive throughout the respective areas of investigation, being lowest when referring to ‘national sales’. The export and employment sectors are also expected to perform better in 2011, mainly as a result of a lower negative outlook by some respondents rather than a rise in the incidence of those respondents who plan to expand. Indeed, the share of respondents who plan to consolidate in 2011 is seen to rise in both exports and employment.”
The positive mood expressed by Maltese respondents is also reflected in the rest of the EU.
According to Eurochambres, this year’s survey indicates that business confidence for 2011 is significantly higher than last year, although with marked differences between countries.
More than half of respondents anticipate that the favourable climate which started in 2010 will continue next year, and 30 per cent believe that it will improve even further. Swedish businesses are the most upbeat about the economic climate for 2011, while pessimism prevails among Greek respondents.
The recovery in business confidence is linked to better forecasts for total turnover, employment and investment.
According to the results, total turnover in 2010 surpassed last year’s expectations and over 40 per cent of businesses expect it to increase further next year. Among the major European economies, France has the highest balance figure. Greece is the only country that does not register a positive forecast.
The export balance figure has progressed most compared to last year’s survey, and delivers the highest result of the six economic indicators analysed in the survey. Domestic sales predictions are improving slowly, pointing to a more moderate recovery than for export sales. Again, France is the most positive, while in Greece, Portugal and Romania the balance figure has weakened the most.
Businesses in 23 of 26 countries, including Malta, anticipate an improvement in the employment situation for 2011. Replies suggest that the workforce will not shrink further in 2011, with two-thirds of respondents anticipating constant staff levels.
Half of the respondents forecast constant investment levels for next year, while about 30 per cent anticipate an increase.
“Compared to the 2009 and 2010 forecasts, this clearly points to 2011 as a decisive year in Europe’s economic recovery,” Eurochambers said.