Malta's trade in 2008 suffered the largest drop in the EU when compared to the previous year.
New trade balance figures published by Eurostat yesterday in Brussels show that Malta registered a sharp 15 per cent decline in its exports and another 10 per cent in imports. Although the trade balance during the year remained the same when compared to 2007, this was a significant drop the trade volume normally registered by the island.
These new statistics, together with recent tourism figures published by Eurostat showing that the island suffered a sharp decline in arrivals during the fourth quarter of the year, confirm that Malta is being hit hard by the international recession.
The EU's statistics office said that while in 2007 Malta exported €2.2 billion worth of goods, the volume fell to €1.9 billion last year, a drop of 15 per cent. Imports also registered a 10 per cent dip, from €3.5 billion in 2007 to €3.1 billion in 2008.
In the local context, imports and exports are closely associated as imported raw materials are often re-worked and exported - as is the case with semiconductors which use silicone and metals among others.
Malta's trade balance - the difference between imports and exports - last year stood at the same level as that of 2007 at €1.2 billion.
According to Eurostat, Malta's negative trade figures were the worst among the 27 EU member states. In fact, the two other member states which registered a decline in exports did not see drops as significant as Malta's. Ireland's exports in 2008 fell by five per cent on 2007 while UK exports dropped by three per cent.
The majority of member states actually saw an increase in exports.
With a 28 per cent increase, Lithuania has by far outdone the other member states, followed by Romania and Slovakia which also registered a year-on-year exports increase of 14 per cent respectively.
Eurostat said that on a general level, EU27 trade with most of its major international partners grew, with the exception of exports to the US (five per cent down) and Japan (three per cent down), and imports from Japan and South Korea (both down five per cent) and Turkey (minus two per cent).
The largest increases were recorded for exports to Brazil (+24 per cent) and Russia (+18 per cent), and for imports from Russia and Norway (both +20 per cent).