Capital City: Valletta
	It is %T:%M %A in Valletta

Click to enlarge

Economic trends

Malta managed to maintain an average GDP growth rate of 5% during 1990s mainly because of large investments in infrastructural projects like international air- and sea ports. However, the economy suffered heavily during the initial years of 2000s due to global slow down; but has now started recovering again. Since 2004, she benefits of annuel growth rate that are over 3%, with a forecast of 2.6% in 2008. After becoming a member of the EU in 2004, the government has taken measures to reform its pension & welfare system, and reduce the public sector involvement in the economy as part of the fiscal consolidation plan (especially reduce its heavy public debit). The rate of inflation was quasi zero in 2007. The unemployment rate remains at around 7%.

Main branches of industry

Agriculture is not much developed in this island country because of unfavourable climatic conditions. Malta does not have any mineral or energy reserves and is completely dependent on imports to meet its energy needs. The island's economy is primarily based on three activities: 1st is the tourism which accounts for 30% of country’s GDP with over 1 million tourists visiting Malta annually; 2nd is the manufacturing industry (mainly semi-conductors) which accounts for 20% of the GDP and 75% of the total exports; 3rd is the maritime activity (Malta has the largest merchant fleet in Europe and the fourth largest in the world). International banking and financial services are growing, and the island is developing as an offshore tax haven. Desalination plants meet more than half of the country's freshwater requirements.

International trade

Being centrally location in the Mediterranean, Malta has long portrayed itself as a bridge between Europe and North Africa, particularly Libya with whom it has enjoyed positive diplomatic and commercial ties. Its total trade-to-GDP ratio is nearly 153%. Malta's top three export partners are: France, the USA, and Singapore. It mainly exports electric & electronic products, machinery, clothes, and printed books & newspapers. The top three import partners are: Italy, the United Kingdom, and France. Malta mainly imports electrical and electronic components, machinery, mineral fuels & oils, vehicles, plastics, and food products. The EU is Malta’s largest trade block.