Malta Budget 2022
11 October 2021
On the 11th of October 2021, Finance Minister Clyde Caruana presented the budget measures for 2022. During his speech, the Minister highlighted that Malta is budgeting to have a deficit of 5.6% of GDP in 2022, when compared to an 11.1% deficit during 2021 and 10.1% during 2020, as economic recovery picks up after the blow of COVID-19.
The Government is expecting that the deficit will decline to 2.9% of GDP by 2024, resulting in a debt-to-GDP ratio of 62.4% in 2024. Despite the hit of COVID pandemic last year which resulted in the economy shrinking by 8.3%, the Government is expecting the Maltese economy to recover during 2022 and grow by 4.8% in real terms and 6.5% in nominal terms.
The debt to GDP-ratio is expected to be 61.8% during 2022. The Finance Minister explained that Malta managed to keep its labour market unharmed by reducing unemployment and raising the number of gainfully occupied persons. Unemployment in 2019 was 3.6% when compared to 3.2% in August 2021. The employment rate was 76.8% in 2019 and 77.3% in 2021 respectively.