Saturday, January 28, 2012

28/1/2012: Spin of 'great investment destinations' - Malta

For 'Malta is a great investment destination' crowd. Here is a quick stats summary based on IMF WEO:

So let’s summarize the above:
Malta is poor, has moderate inflation, which is of course consistent with low growth. Malta’s exports of goods and services are growing very slowly – if it is such a great trading location, can someone explain this? Malta performs well in unemployment terms, but this conceals the fact that Malta’s population is either too old or too young or too long unemployed to actually count as being in the workforce. Hence, Malta is second worst performer in the euro area in terms of actual employment rates.

Malta’s public finances are in line with majority of other Accession States, so it is doing decently well (though not spectacularly) in terms of Government deficit and structural balance. It is not exactly a stellar performer when it comes to Government debt, but it is extremely poor performer when it comes to external balance – current account. Which, of course, is the exact opposite of the evidence required to support the premise that Malta is a success in terms of attracting foreign investment, or being a great destination to trade from.

You can tell, I hate spin!
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