Economic Overview of Malta and New Zealand

4789 WordsMar 16, 201320 Pages
Economic Overview of Malta The strengths of the Economy of Malta are its limestone, a favorable geographic location, and a productive labor 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, manufacturing (especially electronics), tourism and financial services. In 2003, over 1.2 million tourists visited the island.[6] Per capita GDP of $23,200 places Malta just above the middle of the list of European Union (EU) countries in terms of affluence. The island joined the EU in 2004. A sizeable budget deficit was a key concern, but recent initiatives by government have changed the situation allowing for the country to be admitted into the eurozone as of 1 January 2008. In 2010, Malta’s average gross annual earnings stood at €21,446, about €5,000 less than the EU average of €26,497.[7] The strengths of the Economy of Malta are its 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, manufacturing (especially electronics), tourism and financial services. In 2003, over 1.2 million tourists visited the island.[6] Prior to 1800 the majority of Maltese were engaged in agriculture or fishing, although there was significant trade. Until then, 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. During the Napoleonic Wars (1800–1815), Malta's economy prospered and became the focal point of a major trading system. In 1808, two-thirds of the cargo consigned from Malta went to Levant and Egypt. Later, one-half of

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