Malta: country overview
03 July 2012by Ina Dimireva -- last modified 26 January 2017
Malta became an EU Member State in May 2004 and began using the euro as currency in 2008. The most important sectors of Malta's economy in 2015 were wholesale and retail trade, transport, accommodation and food services (22.6 %), public administration, defence, education, human health and social work activities (18.8 %) and professional, scientific and technical activities; administrative and support service activities (12.5 %). Malta's main export partners are Germany, France and Hong Kong, while its main import partners are Italy, the Netherlands and the UK.
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Capital: Valletta
Geographical size: 315 km2
Population: 429 344 (2015)
Population as % of total EU: 0.1 % (2015)
Gross domestic product (GDP): € 8.796 billion (2015)
Official EU language(s): Maltese, English
Political system: parliamentary republic
EU member country since: 1 May 2004
Seats in the European Parliament: 6
Currency: Member of the eurozone since 1 January 2008
Schengen area member? Yes, Schengen Area member since 21 December 2007.
Presidency of the Council: Malta currently holds the revolving presidency of the Council of the EU for the first time.
Country overview
Malta is a group of seven islands in the Mediterranean Sea. Only the three largest islands - Malta, Gozo and Comino - are inhabited. The terrain is low and rocky with coastal cliffs.
Malta, in the heart of the Mediterranean, is a melting pot of civilisations with a history stretching back thousands of years. The country has been inhabited since around 5200 BC and a significant prehistoric civilisation existed on the islands prior to the arrival of the Phoenicians who named the main island Malat , meaning safe haven. Later the islands were for centuries the seat of the Order of Knights of the Hospital of St John and then part of the British Empire. Malta became independent in 1964.
The Maltese government is headed by the leader of the party with a majority of seats in the unicameral House of Representatives, known in Maltese as Kamra tar-Rapprezentanti .
The national language is Maltese, which is part of the Semitic language family that includes Arabic. English is also recognised as an official language, and many Maltese also speak Italian.
Tourism is important in Malta but the island also has an expanding services sector.
Traditional Maltese food includes soup (minestrone, fish), pasta and pastry dishes. Stuffed dishes are also a feature of Maltese cuisine. Stuffat Tal-Fenek (rabbit stew) is a national dish.
Economy overview
Malta - the smallest economy in the euro zone - produces only about 20% of its food needs, has limited fresh water supplies, and has few domestic energy sources. Malta's economy is dependent on foreign trade, manufacturing, and tourism. Malta joined the EU in 2004 and adopted the euro on 1 January 2008.
Malta has weathered the euro-zone crisis better than most EU member states due to a low debt-to-GDP ratio and financially sound banking sector. It has low unemployment relative to other European countries, and growth has recovered since the 2009 recession. In 2014 and 2015, Malta led the euro zone in growth, expanding by nearly 3.5% each year.
Malta's services sector continued to grow in 2015, with noted increases in the financial services and online gaming sectors. Malta continues to enhance its regulation of the financial services sector, and passed additional legislation in 2014 and 2015 to improve anti-money laundering oversight for financial and gaming activities. Expanding EU discussions of anti-tax avoidance measures, including the "Anti-Tax Avoidance Package" submitted in early 2016, have raised concerns among Malta's financial services and insurance providers about passage of laws governing EU tax practices, which could have a significant impact on those sectors.
Malta's 2015 GDP growth was bolstered by energy infrastructure investments, and revenue growth is expected to continue, supported by a strong labor market and proceeds from a citizenship by investment program equal to roughly 0.9% of GDP. Malta's geographic position between Europe and North Africa makes it a route for irregular migration. Historically, Malta's fertility rate has been below the EU average, and population growth in recent years has been largely from immigration, increasing pressure on the pension system. The government has implemented new programs, including free childcare, to encourage increased labor participation. The high cost of borrowing and small labor market remain potential constraints to future economic growth.
Useful links
The Commission's Representation in Malta
European Parliament office in Malta
Source: European Commission, CIA - The World Factbook