The economy of Malta is a highly industrialized, service-based economy. It is classified as an advanced economy by the International Monetary Fund[ and is considered a high-income country by the World Bank and an innovation-driven economy by the World Economic Forum. It is a member of the European Union and of the eurozone, having formally adopted the euro on 1 January 2008.
The following tables and chart will tell the change details in last 5-10 years:
Malta Distribution of GDP across economic sectors:
Here attached the last 10 years chart of Malta GDP: (amount in billion USD):
3 Sectors of the Economy – Agriculture, Industry and Services:
Agriculture is not an important part in the Malta's economy. It employs almost 4% of the total workforce and contributed almost 0.71% in GDP.
The main crops are potatoes, cauliflower, grapes, wheat, barley, tomatoes, citrus, and green peppers. Potatoes are by far the main crop and accounted for 32,000 metric tons of the total agricultural output of 38,000 metric tons.
Agriculture Subsidy in Malta:
Malta is the smallest recipient of Common Agricultural Policy funds. Farmer of Malta receive almost 1 billion Euro every which is almost less than 5% share of the Common Agriculture Policy Fund.
European Union Common Agriculture Policy:
The CAP is a common policy for all EU countries. It is managed and funded at European level from the resources of the EU's budget. The CAP takes action with:
- Income support through direct payments ensures income stability, and remunerates farmers for environmentally friendly farming and delivering public goods not normally paid for by the markets, such as taking care of the countryside;
- Market measures to deal with difficult market situations such as a sudden drop in demand due to a health scare, or a fall in prices as a result of a temporary oversupply on the market;
- Rural development measures with national and regional programs to address the specific needs and challenges facing rural areas.
Industry is an important part in the Malta's economy. It accounts for 12.57% of GDP and employed almost 27% of the workforce.
Major Industries in this Sector:
Pharmaceutical Industry: In 2019, the life sciences and pharmaceutical sectors were directly responsible for a total 17% of Malta's gross domestic product (GDP). The pharmaceutical cluster in Malta is a very consolidated industry, with companies operating all along the pharma value chain. In 2020, Malta exported almost $410 million worth of pharmaceutical products. Its contributed almost 15.3% of total export of Malta.
Service sector is an important part in the Malta's economy. It contributes almost 75.71% in the GDP and employed almost 69% of the total Malta's workforce.
Major Industries in this Sector:
Finance: Financial services accounts for 11 percent of Malta's GDP, and the industry is largely based on the core sectors of asset management, investment funds, insurance, private wealth and corporate services, with the introduction of fintech, including blockchain and e-payments, as well as the aviation, yachting, and maritime services industries. Malta hosts more than 665 investment funds that have a combined net asset value of almost $13.7 billion as of June 2019. The sector employs more than 10,000 people.
Tourism: Tourism is an important contributor to Malta's economy, directly supporting 33 180 jobs and 14.9% of total employment in 2019. The contribution of tourism to Malta's GDP in 2018 was 12.8%, making tourism one of the top five contributors to the economy. Total tourist expenditure was EUR 2.1 billion, an increase of 8% from 2018. Malta features a number of tourism attractions encompassing elements of the island's rich history and culture, as well as aquatic activities associated with the Mediterranean Sea. In addition, medical tourism has become popular in Malta in recent years, especially since government efforts to market the practice to medical tourists in the United Kingdom.
Top Companies in Malta:
|Company Name||Sector||Market Cap (USD)|
|Brait SE||Financial Services||0.337B|
|Catena Media||Consumer Services||0.258B|
|Media and Games Invest||Communication Services||0.235B|
|Raketech Group Holding||Communication Services||0.049B|