Malta » Introduction

Basic Economic Facts

GDP composition by Sector

Until 1800, Malta had very few industries except the cotton, tobacco, and shipyards industry. The dockyard was later used by the British for military purposes.

At times of war, Malta's economy prospered due to its strategic location. In 1869, the opening of the Suez Canal benefited Malta's economy greatly as there was a massive increase in the shipping which entered in the port.

Nowadays, Malta’s major resources are limestone, a favourable geographic location, and a productive labour force. Malta produces only about 20% of its food needs, has limited freshwater supplies, and has no domestic energy sources. The economy is dependent on foreign trade (serving as a freight trans-shipment point), manufacturing (especially electronics and textiles), and tourism.

Tourism infrastructure has increased dramatically over the years and a number of quality hotels are present on the island. Malta has recently privatised some state-controlled firms and liberalised markets in order to prepare for membership in the European Union, which it joined on May 1, 2004. Malta and Tunisia are currently discussing the commercial exploitation of the continental shelf between their countries, particularly for petroleum exploration.

The Maltese government entered ERM II in May 2005, and is intending to adopt the euro as the country's currency on 1 January 2008. Although Malta is now a member of the European Union, it is not a member of the Schengen Treaty yet. It is currently adopting Schengen regulations with the goal to be finished by 2007.