Q. Malta’s recession was shorter and shallower than the eurozone average, and its gross domestic product (GDP) growth rate for 2011 is forecast to be higher. What are the strengths of Malta’s economy, and its weaknesses?
A. The global economic crisis has shown that the Maltese economy is quite resilient to external shocks. This primarily reflects its diversification into high value-added activities such as pharmaceuticals, aircraft maintenance and financial services. This trend, which is ongoing, has been possible because of heavy investment in education and training programmes, and the adaptability of the workforce. Political and economic stability, sound fundamentals and policy predictability, and membership of the euro area, reflected in a good credit rating, are other strengths.
