Malta has proven time and time again that its economy is capable of significant growth. Before the COVID-19 pandemic, its economy registered continued growth, with several thriving industries leaving a positive impact year on year. The successes of these previous years have proved vital for the country to arm itself against the negative effects of the Coronavirus pandemic.
When analysing the Eurostat figures taking into account April to June, one notices that Malta is the only country within the European Union which registered an increase in employment. When comparing with other European Union member states, all have registered a decrease in employment when taking into account from April till June.
The largest decreases in employment could be traced to Spain, Ireland, Hungary and Estonia, whilst Malta on the other hand, registered an increase of 0.6%.
So why do things look good even though we are living through one of the worst phases in human history?
A supportive government
The past economic successes have enabled the government to introduce generous measures to cover several salaries of employees, together with subsidising those who became unemployed due to COVID-19. The measures allowed both businesses and individuals to trudge through the economic turmoil. Malta’s government was always against a complete lockdown, whereby the Government allowed activities related to the construction industry to continue even during the cruel months of March and April.
During this economically turbulent period, the Government of Malta has introduced a tax incentive whereby anyone who buys property before March 2021, he will pay a tax rate of 1.5% instead of the usual 5%. Economic activity around the property sector impacts several professionals and businesses including architects, lawyers, construction companies, finishes’ service providers, notaries, property agents and others who are seeking to invest.
Top quality healthcare
Yes, we are living during a problematic pandemic with several restrictions, however Malta has never really been in a position where hospitals were overwhelmed. This enables people to, as much as possible, continue with their daily lives. Although we have been recording increases in COVID-19 cases, the mortality rate remains around one percent and the situation within hospitals is under control, considering that most are recovering from their own homes.
It is very clear to see that Malta has managed this crisis quite professionally when compared to other countries. As talks of a looming vaccine continue to gain ground, we can only wait until the situation becomes fully under control and Malta can once again focus on an economic upward trajectory.