Malta’s economy is renowned for its prosperity and resilience. Over the years, the country has proven to be robust and versatile, creating numerous job opportunities for locals and foreigners alike. It is a country driven by several thriving industries including gaming, financial services, tourism, property and construction. The COVID-19 pandemic has hindered the impressive growth of the Maltese economy, together with that of several countries around the globe. Together with the lasting impacts of the COVID-19 pandemic, Malta has dealt another blow, that of being classified as a grey listed country by the Financial Action Task Force (FATF).
In this article, we shall be discussing some key points that the country should focus on to enable its economic recovery.
One of the cornerstones of a successful economy is investor confidence. The events which unfolded over the past months have dampened confidence levels in new business, especially when considering that the world has seen an economic contraction like no other. The fact that vaccine effectiveness is yet to be understood over the long term means that several investors are still playing wait and see, so instilling confidence will by no means be an easy feat.
Malta’s economic outlook will heavily depend on its ability to innovate. Although the country’s economy was performing spectacularly well before the pandemic, no new industry has been set up or established for the coming years. Excluding the cash for passports scheme, Malta has not really done much apart from fuelling already existing industries to generate greater economic returns. In order to maintain its relevance and attract foreign investors, Malta must illustrate that it is at the forefront of attracting new industries and target new market players.
A clean slate
In view of its recent grey listing status, Malta has no other choice but to pull up its socks and work on its reputation. The country finds itself in quite a unique moment in its history, especially when considering that it always enjoyed a solid reputation. A flimsy jurisdiction which is monitored for the wrong reasons does not translate to encouraging business prospects. This may impact attractiveness amongst foreign investors and operations of already established businesses as financial transactions are subjected to additional scrutiny, creating delays.
What do you think are the prospect for Malta’s economy? What do you make about its recovery? Let us know your views in the comments section below.