Malta is not immune to the inflation that is affecting the world. The increase in the interest rates by the ECB as well as the increase in the cost of products which Malta imports from numerous countries including Italy and Germany being Malta’s main importing countries, also directly affects Malta’s economy.
Malta must thus aim for long term planning whilst incentivising the local manufacturing industry.
The Hon. Minster of Finance & Employment noted however that despite all these challenges, Malta’s rate of inflation has remained one of the lowest within the EU and this was the backbone on which the 2023 Budget has been formulated whilst ensuring that the spending remains within the Country’s means.