The Economic Activity of Malta

Malta’s economy is basically driven by three different sectors. This Mediterranean island state draws income from its limestone industry, world competitive financial services and steady tourism industry.

By virtue of its geographic location, Malta is blessed with so much limestone. The limestone quarrying industry is the biggest mineral industry in the country so, for sure, thousands of Maltese benefit from this industry. Malta’s limestone landscapes had also been instrumental in spurring its tourism industry as natural landscapes and various carved limestone objects give tourists an added reason to check out this European country.

The financial sector of Malta contributes about 12% to its economy. The financial sector of Malta and its inclusion into the European Union made it a very good springboard for offshore countries to have a base in the lucrative European market. One of the foreign-based countries that have taken advantage of Malta’s offshore banking services are Australian banks leading to reduced 150 basis points from its effective rates. Further, in 2008, the IMF has declared that Malta’s banking system is in a very healthy condition to weather the current global financial crisis going on.

The tourism industry of Malta contributes about 35%. Malta’s tourism authorities are definitely pushing the right buttons because despite no significant growth in terms of tourist visitors, the amount of spending per tourist has jumped remarkably. One of the things that are doing well in Malta’s tourism industry is their cruise ship packages. The Grand Harbour of Malta is now considered the fourth busiest port of call in Europe. The government has also granted licenses to small aircraft operators giving budget conscious tourists to travel more often in and out of the country which have also spurred competition in its airline industry.

Other strong contributors to Malta’s economy are the electronics sector, ship building and repair, construction, pharmaceutical, footwear and clothing, tobacco and information technology as well.