This weekend, the island nation Malta is celebrating their 50 years anniversary for their independence from the United Kingdom. Malta was under foreign rule for over 150 years, and it was difficult for them to become economically successful.
At the time of liberation, Malta’s Prime Minister Dr. George Borg Olivier received the constitutional instruments from Prince Philip. Malta’s economy was heavily focused on the dockyards, and the limited supply of human resources (only 300.000 people lived on the island) proved to be a difficult start. The dockyard provided a stable economy, but they were depending on the British navy. However, in order to focus on a new independent economy, the government of the United Kingdom agreed on investing £50 million in the economy of the Maltese islands.
In 1970, the GDP in Malta was at ca. €3,000 and now it is at €16,000. This is measured on the base of the Constant 2005 US$, taking into account inflation and deflation.
The next big step for Malta was becoming a part of the European Union in 2004. This helped to expand business opportunities in Europe, but also brought along the threat of competition and foreign imports. Although Malta was also affected by the economic crisis that started in 2008, the stable domestic economy suffered little from the impact. The banks in Malta were only funded by local money, and did not have any foreign funds. Subsequently, the banks did not face the problems that, for example the banks in Greece were facing when the investors withdrew their money.
Malta’s economy is currently very stable. Many foreign owned companies on the island contribute to the ongoing success and growth of the GDP, and since Malta is such a small country changes can be applied much quicker than in larger economies. Overall, Malta has proven to be a good choice for workers and companies to settle down and benefit from the great economic situation this country is in.
