VALLETTA, June 10 (Xinhua) -- The Central Bank of Malta has revised downwards its projections for the country's economic growth this year and next, reflecting a deterioration in the international economic environment, it said in a report published on Friday.
In an updated outlook for the Maltese economy until 2024, the central bank said it expects gross domestic product (GDP) to grow by 5.4 percent in 2022, 4.9 percent in 2023 and 3.8 percent in 2024.
Compared to the bank's previous projections, this is a downward revision of 0.6 percentage points for 2022 and 0.4 percentage points for 2023.
It said net exports are expected to be the main driver of growth in 2022, reflecting the correction in import-intensive investment outlays from the exceptional levels reached in 2021.
The contribution of domestic demand is expected to be positive but significantly lower compared to that of the previous year. However, in the following years, domestic demand is expected to lead the expansion in economic activity, reflecting especially a foreseen strong contribution from private consumption.
The central bank said that employment growth in 2022 is expected to reach 2.9 percent (1.6 percent in 2021). It is set to moderate to just below 2 percent by 2024. The unemployment rate is projected to decline further.
Annual inflation based on the Harmonized Index of Consumer Prices (HICP) is projected to accelerate to 5 percent in 2022 from 0.7 percent in 2021, it said. ■
