Economic trends
Malta has achieved great economic development during the last 40 years. The country managed to maintain an average GDP growth rate of 5% during 1990s, mainly due to large investments in infrastructure projects. However, the economy slowed down in a general manner at the beginning of the second millenium years.
The economic crisis affected the country but to a lesser extent than the rest of Europe. Having a solid financial foundation and no inclination for toxique loans, the country came out of the crisis relatively well. The only sector that was really affected by the crisis was the tourism sector with a reduction in foreign tourists to the country. Despite the slowing down of the economy, the European Commission predicted a positive growth of 0.7% for Malta in 2009. The only damper is still the excessive budget deficit, which is over the 3% threshold laid down by the European Commission. The European Commission has insisted that this deficit be reduced by 2010.
Main branches of industry
The island's economy is primarily based on tourism (which accounts for almost 30% of country’s GDP with over 1 million tourists visiting Malta annually), on manufacturing (electronics and pharmaceutical products) which accounts for 20% of the GDP and 75% of the total exports and on financial activities (which account for 13% of the GDP).
Malta does not have any mineral or energy reserves and is completely dependent on imports in this area.
International trade
Being centrally located in the Mediterranean, Malta has long portrayed itself as a bridge between Europe and North Africa, particularly with Libya with whom it has always enjoyed positive diplomatic and commercial ties. Trade represents more than 150% of Malta's GDP. Its three main export partners are the European Union, the United States and Singapore. It exports mainly electrical and electronic products, machinery, textile products, books and newspapers. Its three main import partners are Italy, the United Kingdom and France. Malta mainly imports electrical and electronic components, machinery, mineral fuels and oil, vehicles, plastics, and food products.
The country's trade balance has, for a long time, been in the red. However, the situation improved in 2008-2009 due to exports picking up again, propelled by the development of a largely export pharmaceutical industry.
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