National economy of Malta - industries, GDP and prosperity level

Malta is considered an industrial country. The most developed sectors are industry, trade, the service sector and as well as the financial sector. It is worth noting that tourism in Malta is a fundamental activity. It is recorded that at least one million tourists visit the republic every year. The tourist and hotel complexes continue to develop actively; there are special recreation facilities, as well as SPA hotels. In addition, the location of the Island provides an opportunity to actively develop diving and conduct various international competitions on its territory.

If we talk about the industry, its emphasis is directed towards the construction of maritime transport as well as ship repair activities. Income generated from this sector plays a very important role with regards to the state economy. More than 50,000 people are engaged in shipbuilding and ship repair, and this is about one third of the total number of able-bodied population. Malta is engaged not only in repair and maintenance of its own sea transport, but also that of other countries as well. Electronics is another relatively new branch of industrialization in Malta. This sector is however not owned or controlled by the State. The largest electronics companies belong to the Italians. Such co-operation as this, positively affects the economy of the State. Recent survey shows that about two billion euros has been invested in this sector from overseas.

Agriculture plays an insignificant role in shaping the country’s overall economy. Almost all food products are imported from neighboring countries. The soil in the country is very poor in minerals. The agricultural sector constantly receives subsidies, as it is not capable of sustaining itself. Despite technical progress, fields and arable land are still cultivated by hand in Malta. The main crops that can be cultivated in the country, having being able to thrive under the climatic conditions are cabbage, pepper, tomatoes and onions. Potato most resoundingly is considered to be a subject of national pride and is actively exported to France and Italy. There are also minor crops like wheat, barley and corn. Copyright www.orangesmile.com

Transport infrastructure in Malta is quite well developed. Due to the fact that the country’s territory is quite small and the terrain is unfavorable, the railways completely ceased to exist at the beginning of the last century. Taking its place are the buses, which conduct runs to almost every corner of the country and go at minimal intervals. The commercial marine fleet of the Maltese Islands has thousands of transport units, each with a carrying capacity of more than 1,000 tons. Today, the country’s foreign economy is aimed at attracting foreign investments to its territory. It is worth noting that Malta is very dependent on the import of various minerals, engineering products and foodstuffs.

Foreign economic relations are mostly focused towards the countries of the European Union. Also, for some time now, Malta has been actively cooperating with the United States of America. As a rule, products from electronics, textile industry and elements of shipbuilding are exported. To date, domestic policy is aimed at encouraging the development of products with full processing. The use of innovative technologies is encouraged too. Despite the fact that Malta has been part of the European Union for fifteen years, salaries here and price levels respectively, are considerably much lower than in developed countries in Europe. Unemployment today is about 5 percent, and inflation is about 3 percent.

Today, the state is trying to increase her investments in the education sector, with priority placed on higher education and it deeply appreciates highly qualified specialists. Also, free medical care is available to every resident of Malta. The number of people living below the poverty line is less than 1 percent. The rate of economic growth in the past 10 years alone is more than 9 percent per year. These figures have however decreased by 4 percent over the past year. This is as a result of the difficult economic situation around the world. This recorded political stability being enjoyed in the Country, is due to the fact that all segments of the population are sufficiently provided for. They receive support from the state and have the means for self-realization. The crime rate in the country is the lowest among all countries of the European Union. GDP according to the statistics of the last year is about $ 900 million. Meanwhile about 19 000 dollars is estimated per capita in the country.