Yesterday the IMF issued its updated Economic Outlook. As anticipated it does not carry good news.
In a nutshell the report outlines that the global economy continues to face steep challenges, shaped by the lingering effects of three powerful forces: the Russian invasion of Ukraine, a cost-of-living crisis caused by persistent and broadening inflation pressures, and the slowdown in China. On the other hand the tightening of monetary policies that delivered unprecedented support in the past, will obviously effect demand, as policymakers aim to lower inflation back to target. The global economy’s future health rests critically on the successful calibration of monetary policy, the course of the war in Ukraine and the possibility of further pandemic-related supply-side disruptions, for example, in China. All this is resulting in having a growing share of global economies that are in a growth slowdown or outright contraction.
If we take a closer look at home, with regards the GDP growth projections for Malta we can see, that like all other Euro Area countries, our economic growth for next year 2023 is projected to fall significantly. Notwithstanding this drop in economic growth the Maltese economy is forecast to perform better than most other Euro Area economies in 2023.
If one where to have a look at the GDP Growth Projections for Malta, issued by IMF over the past year, one would see that the projections for 2023 and 2024 have been worsening from one forecast to another, as the headwinds outlined at the start of this article developed further.
So as the growth of Malta’s economy is very likely to slow down, like the rest of the world’s economies, business leaders would do well to prepare their businesses accordingly. I have posted many articles on various aspects to focus on to have this done, some of which I am listing below:-