NationMaster - Encyclopedia: Economy of Malta

Major resources of Malta are limestone, a favorable geographic location, and a productive labour force. Malta produces only about 20% of its food needs, has limited freshwater supplies, and has no domestic energy sources. The economy is dependent on foreign trade, manufacturing (especially electronics and textiles), and tourism; the state-owned Malta drydocks employs about 3,800 people. In 1999, over 1 million tourists visited the island. Per capita GDP of $13,800 places Malta in the ranks of the less affluent EU countries. The island has joined the EU in 2004 despite having been the divided politically over the question earlier. The sizable budget deficit remains a key concern. Limestone (CaCO3) is a sedimentary rock composed of the mineral calcite (calcium carbonate). ... A tourist boat travels the River Seine in Paris, France Beaches make popular tourist resorts. ...

Economic History

Until 1800, Malta had very few industries except the cotton, tobacco, and shipyards industry. The dockyard was later used by the British for military purposes. At times of war, Malta's economy prospered due to its strategic location. 1800 was a common year starting on Wednesday (see link for calendar). ... Cotton is a soft fibre that grows around the seeds of the cotton plant, a shrub native to the tropical and subtropical regions of both the Old World and the New World. ... Species N. glauca N. longiflora N. rustica N. sylvestris N. tabacum Ref: ITIS 30562 as of August 26, 2005 Tobacco (, L.) refers to a genus of broad-leafed plants of the nightshade family indigenous to North and South America or to the dried and cured leaves. ... Small shipyard in Klaksvík (Faroe Islands), reparing fishing vessels Dockyards and shipyards are places which repair and build ships. ...

During the Napoleonic Wars (1800–1815), Malta's economy prospered and became the focal point of a major trading system. In 1808, two-thirds of the cargo consigned from Malta went to Levant and Egypt. Later, one-half of the cargo was usually destined for Trieste. Cargo consisted of largely British and colonial-manufactured goods. Malta's economy became prosperous from this trade and many artisans, such as weavers, found new jobs in the port industry. The Napoleonic Wars were a series of wars fought during Napoleon Bonapartes rule over France. ... 1808 was a leap year starting on Friday (see link for calendar). ... The Levant or Sham (Arabic root word related to the term Semite) is an approximate historical geographical term referring to a large area in Southwest Asia south of the Taurus Mountains, bounded by the Mediterranean Sea in the west, and the north Arabian Desert and Mesopotamia to the east. ... Location within Italy Trieste (Latin Tergeste, Italian Trieste, Slovenian and Croatian Trst, German and Friulian Triest) is a city in northeastern Italy, capital of Friuli-Venezia Giulia region and Trieste province, population 211,184 (2001). ...

In 1820, during the Battle of Navarino, which took place in Greece, the British fleet was based in Malta. In 1839, the Peninsular and Oriental Steam Navigation Company and East India Companies used Malta as a calling port on their Egypt and Levant runs. 1820 was a leap year starting on Saturday (see link for calendar). ... Battle of Navarino The naval Battle of Navarino was fought on 20 October 1827, during the Greek War of Independence (1821-29). ... 1839 was a common year starting on Tuesday (see link for calendar). ... The Peninsular and Oriental Steam Navigation Company, which is usually known as P&O, is a British shipping and logistics company which dates from the early 19th century. ... East India Company was the name of several historic European companies chartered with the monopoly of trading with Asia for their respective countries. ... The Levant or Sham (Arabic root word related to the term Semite) is an approximate historical geographical term referring to a large area in Southwest Asia south of the Taurus Mountains, bounded by the Mediterranean Sea in the west, and the north Arabian Desert and Mesopotamia to the east. ...

In 1869, the opening of the Suez Canal benefited Malta's economy greatly as there was a massive increase in the shipping which entered in the port. The economy had entered a special phase. The Mediterranean became the "world highway of trade" and a number of ships called at Malta for coal and various supplies on their way to the Indian Ocean and the Far East. 1881 drawing of the Suez Canal The Suez Canal (Arabic, QanÄ al-Suways), west of the Sinai Peninsula, is a 163-km maritime canal in Egypt between Port Said (BÅ«r SaÄ«d) on the Mediterranean Sea and Suez (al-Suways) on the Red Sea. ... The Mediterranean Sea is an intercontinental sea positioned between Europe to the north, Africa to the south and Asia to the east, covering an approximate area of 2. ... Coal is a fossil fuel extracted from the ground by deep mining, coal mining (open-pit mining or strip mining). ... Far East is an inexact term often used for East Asia and Southeast Asia combined, sometimes including also the easternmost territories of Russia, i. ...

From 1871 to 1881, about 8,000 workers found jobs in the Malta docks and a number of banks opened in Malta. By 1882, Malta reached the height of its prosperity. 1871 was a common year starting on Sunday (see link for calendar). ... 1881 was a common year starting on Saturday (see link for calendar). ... 1882 was a common year starting on Sunday (see link for calendar). ...

However, the boom did not last long. By the end of the 19th century, the economy began declining and by the 1940s, Malta's economy was in serious crisis. This was primarily due to the invention of large ships which had become oil-fired and therefore had no need to stop in the Grand Harbour of Malta to refuel. The British Government had to extend the dockyard. Alternative meaning: Nineteenth Century (periodical) (18th century — 19th century — 20th century — more centuries) As a means of recording the passage of time, the 19th century was that century which lasted from 1801-1900 in the sense of the Gregorian calendar. ...

At the end of World War II, Malta's strategic importance had reached a low point. Modern air warfare technology and the invention of the atomic bomb had changed the importance of the military base. The British lost control of the Suez Canal and withdrew from the naval dockyard, transforming it for commercial shipbuilding and ship repair purposes. World War II was a truly global conflict with many facets: immense human suffering, fierce indoctrinations, and the use of new, extremely devastating weapons like the atom bomb World War II, also known as the Second World War, was a mid-20th-century conflict that engulfed much of the globe... The mushroom cloud of the atomic bombing of Nagasaki, Japan, 1945, rose some 18 km (11 mi) above the epicenter. ... 1881 drawing of the Suez Canal The Suez Canal (Arabic, QanÄ al-Suways), west of the Sinai Peninsula, is a 163-km maritime canal in Egypt between Port Said (BÅ«r SaÄ«d) on the Mediterranean Sea and Suez (al-Suways) on the Red Sea. ...

Economy - in greater depth

Possessing few indigenous raw materials and a very small domestic market, Malta has based its economic development on the promotion of tourism and labor-intensive exports. Since the mid-1980s, expansion in these activities has been the principal engine for strong growth in the Maltese economy. Investment in infrastructure since 1987 has stimulated an upswing in Malta's tourism economic fortunes.

Tourist arrivals and foreign exchange earnings derived from tourism have steadily increased since the 1987 watershed, in which there was growth from the previous year of, respectively, 30% and 63% (increase in terms of U.S. dollars). Following September 11, 2001 Terrorist Attack, the tourist industry has suffered some setbacks. The World Trade Center on fire The September 11, 2001 attacks were a series of coordinated terrorist attacks against the United States on September 11, 2001. ...

With the help of a favorable international economic climate, the availability of domestic resources, and industrial policies that support foreign export-oriented investment, the economy has been able to sustain a period of rapid growth. During the 1990s, Malta's economic growth has generally continued this brisk pace. Both domestic demand (mainly consumption) boosted by large increases in government spending, and exports of goods and services contributed to this favorable performance.

Buoyed by continued rapid growth, the economy has maintained a relatively low rate of unemployment. Labor market pressures have increased as skilled labor shortages have become more widespread, despite illegal immigration, and real earnings growth has accelerated. Dorothea Langes Migrant Mother depicts destitute pea pickers in California during the Great Depression. ...

Growing public and private sector demand for credit has led -- in the context of interest rate controls - to credit rationing to the private sector and the introduction of noninterest charges by banks. Despite these pressures, consumer price inflation has remained low, reflecting the impact of a fixed exchange rate policy and lingering price controls. The term credit can have several meanings in different contexts. ... The essential function of a bank is to provide services related to the storing of deposits and the extending of credit. ... In economics, incomes policies are wage and price controls used to fight inflation. ...

The Maltese Government has pursued a policy of gradual economic liberalization, taking some steps to shift the emphasis in trade and financial policies from reliance on direct government intervention and control to policy regimes that allow a greater role for market mechanisms. However, by international standards, the economy remains highly regulated and continues to be hampered by some longstanding structural weaknesses.

There is a strong manufacturing base for high value-added products like electronics and pharmaceuticals, and the manufacturing sector has more than 250 foreign-owned, export-oriented enterprises. Tourism generates 35% of GDP, with Malta attracting more than 1.2 million visitors in 2000. Two digital voltmeters The field of electronics is the study and use of systems that operate by controlling the flow of electrons or other electrically charged particles in devices such as thermionic valves and semiconductors. ... Pharmacology (in Greek: pharmacon is drug, and logos is science) is the study of how chemical substances interfere with living systems. ...

In 2000 the economy grew by 7% in nominal terms and 4.3% in real terms. Unemployment was down to 4.4%, its lowest level in 3 years. Many formerly state-owned companies are being privatized - and the market liberalized.

Fiscal policy is now directed toward bringing down the budget deficit. Public debt grew from 24% of GDP in 1990 to 56% in 1999. The target is a deficit-to-GDP ratio of around 3% in 3 years. In 2000 deficit-to-GDP ratio was 6.6% of GDP, down from 11% last year.

Economy in figures

GDP - composition by sector:
agriculture: 3%
industry: 26%
services: 71% (1997 est.)

Household income or consumption by percentage share:
lowest 10%: NA
highest 10%: NA

Labor force - by occupation: industry 24%, services 71%, agriculture 5% (1999 est.)

Budget:
revenues: $1.32 billion
expenditures: $1.76 billion, including capital expenditures of $NA (1998 est.)

Industries: tourism; electronics, ship building and repair, construction; food and beverages, textiles, footwear, clothing, tobacco

Electricity - production by source:
fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (1998)

Agriculture - products: potatoes, cauliflower, grapes, wheat, barley, tomatoes, citrus, cut flowers, green peppers; pork, milk, poultry, eggs

Exports - partners: France 20.7%, US 18.1%, Germany 12.6%, UK 7.7%, Italy 4.8% (1998)

Imports - commodities: machinery and transport equipment, manufactured goods; food, drink, and tobacco

Imports - partners: Italy 19.3%, France 17.8%, UK 12.4%, Germany 10.5%, US 8.9% (1998)

Exchange rates: Maltese liri (LM) per US$1 - 0.4086 (January 2000), 0.3994 (1999), 0.3885 (1998), 0.3857 (1997), 0.3604 (1996), 0.3529 (1995)

Fiscal year: [[1 April]–31 March March 31 is the 90th day of the year in the Gregorian Calendar (91st in Leap years), with 275 days remaining, as the final day of March. ...

Contents

Economy - overview:

Economic History

Economy - in greater depth

Economy in figures

See also

Contents

Economy - overview:

Economic History

Economy - in greater depth

Economy in figures

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See also