Until 1960, Malta’s economy was dependent on the United Kingdom, especially the British Army, which was based in Malta until 1950. Then everything changed, and development plans were drawn up in 1959. In 1990, Maltese import controls changed, and the island became more market oriented.
Economic Impact and Ongoing Challenges
Privatization began in 1999, while the archipelago joined the EU in 2004 (the euro came in 2008), completely abolishing capital controls. In 2007, Malta’s budget deficit was very low (less than 3%), which was the reason and requirement to join the EU. Malta today is still struggling because it has a small domestic market and is very dependent on imported goods.
Agriculture
Agriculture is difficult on the islands because the soil cannot be watered well enough and the subsoil of limestone does not give enough space to the topsoil. Construction in Malta goes on and on and farming has been pushed to part-time jobs. The labour force is now geared toward urbanization.
Nevertheless, agriculture has developed because Malta uses various techniques that allow the cultivation of different fruits and vegetables, such as citrus and grapes, potatoes and tomatoes.
Since 1990, the production of vines and olives has increased, which is remarkable. What is also remarkable is that Malta is self-sufficient in food production, although it still imports beef. Since Malta joined the EU, the agricultural sector has become more competitive.
Fishing in Malta is seasonal. Dolphin and bluefin tuna are caught for export. Since 1980, fishing has also been an important source of income for the islands. Sea bass and gilt head bream are farmed in fish farms in the sea. Bluefin tuna are also fattened in these farms. Since Malta joined the EU, it has received financial support to promote tuna exports, which has increased Malta’s income.
Tourism in Malta
Tourism in Malta accounts for 50% of Malta’s GDP. 60% of Malta’s workforce works in this sector. June to October is the absolute high season, when tourism in Malta is extremely busy and ours are held all over the island of Malta. Many tourist attractions are part of the UNESCO World Heritage Site, which makes Malta quite unique. Malta’s history is evident in its castles, cathedrals and ancient cities such as Mdina. Because Malta is an island, boat trips Malta, Comino and Gozo are wildly popular. Ecotourism tries to limit the impact of tourism on the islands. Still, beautiful unique spots get overcrowded in high season, something that cannot be easily stopped. Building is also a continuous factor and has a visual impact on the islands.
Modern Economy in Malta
Malta is still dependent on trade, especially in the agricultural and electronic sectors. The number of tourists is increasing every year, although the pandemic had a very bad impact. Malta has overcome this and is back to previous levels, including further growth.
Film production is a steadily growing industry, despite competition from other regions. It stimulates the labour force and Malta’s economy. It stimulates the labour force and Malta has a very low unemployment rate (less than 4.4%).
