Malta's GDP growth is projected to glide to 4.1% this year and 3.7% in 2017 and 2018, which still puts it among the fastest growing in the euro area, the European Commission said in its autumn forecast today.
Growth was 6.2% last year.
"Growth is to continue to be based on strong labour market fundamentals - robust job creation and low unemployment. Fiscal consolidation is set to continue, bringing down the government debt below 60% of GDP," the commission said.
"Domestic demand is projected to remain the main driver of growth in 2016 and 2017. Private consumption is seen to be the main contributor reflecting rising disposable income, a growing population, and a decreasing saving rate.
"Following the construction of a new power plant, private investment is projected to remain strong in 2016 and 2017 boosted by newly-emerging activities in the transport sector as well as a number of large projects. As the investment cyclemoderates, gross fixed capital formation is seen to contract in 2018 on a high base."
It said that services, particularly transport, are projected to be the main driver of exports over the forecast horizon, despite a projected decrease in demand from the...
