Malta Budget 2017
Deloitte Malta presents a summary and analysis of the Malta Budget 2017 speech presented to the House of Representatives by the Hon. Prof. Edward Scicluna, Minister of Finance on 17 October 2016.
- Real GDP growth of 4.1% is estimated for 2016 and 3.5% is projected for 2017.
- Economic activity is still considered relatively robust, although recent developments are characterised by declining growth rates.
- Domestic demand continued to be the main driver, contributing to circa 80% of growth. Net exports are expected to contribute moderately to growth in 2016, explained by a recovery in foreign demand.
- Employment growth is expected to hover at around 2.9% in 2016 and is projected at 2.7% for 2017.
- The highest growth rates are being reported within the entertainment and recreation sector, professional services and support service activities.
- Unemployment rates for both the current year and the next (2017) are forecast at 5.0%, close to the natural unemployment rate (4.0%).
- Modest increases in nominal compensation per employee are observed, expected at 1.9% during 2016 and projected at 2.6% for 2017.
- The supply of foreign workers and subdued international energy prices are considered to be the main reasons restraining wage growth.
- Fiscal consolidation is reported to progress in line with Government’s projections to the extent that original targets were exceeded.
- The General Government Deficit is expected to fall to 0.7% of GDP in 2016, and projected at 0.5% for 2017, primarily on the back of strong nominal GDP growth.
- Under a no policy change assumption, General Government Debt is expected to decline to 63.3% of GDP in 2016, and projections for 2017 place debt at 61.9% of GDP.
Disclaimer: This publication reflects high level announcements made in the Budget Speech on 17 October 2016, which are typically implemented through detailed legislative amendments and tax guidelines that have yet to be published. Clients are advised to seek appropriate professional advice following the publication of such detailed amendments or guidelines and prior to implementing any actions based on the information given in this publication.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/mt/about for a more detailed description of DTTL and its member firms.
Deloitte Malta refers to a civil partnership, constituted between limited liability companies, and its affiliated operating entities: Deloitte Services Limited, Deloitte Technology Solutions Limited, Deloitte Digital & Technology Limited, Deloitte Digital Limited, Deloitte Technology Limited, and Deloitte Audit Limited. The latter is authorised to provide audit services in Malta in terms of the Accountancy Profession Act. A list of the corporate partners, as well as the principals authorised to sign reports on behalf of the firm, is available at www.deloitte.com/mt/about. Cassar Torregiani & Associates is a firm of advocates warranted to practise law in Malta and is exclusively authorised to provide legal services in Malta under the Deloitte brand.
Deloitte provides audit, consulting, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500 ® companies through a globally connected network of member firms in more than 150 countries and territories bringing world-class capabilities, insights, and high-quality service to address clients’ most complex business challenges. To learn more about how Deloitte’s approximately 245,000 professionals make an impact that matters, please connect with us on Facebook, LinkedIn, or Twitter.
This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.
© 2016. For information, contact Deloitte Malta.