Issue link: https://maltatoday.uberflip.com/i/1515985
12 15.2.2024 NEWS ACCORDING to the Bank's latest fore- casts, Malta's gross domestic product (GDP) is expected to grow by 4.4% in 2024. Growth is then expected to edge down to 3.6% in 2025, and to 3.3% by 2026. is implies an upward revision in 2024, when compared to the Bank's previous projections, while for 2025 and 2026 the outlook is unchanged. e upward revision is mainly on account of positive revisions in private consump- tion and net exports in the latest nation- al accounts data release. While in 2023, growth appeared to have been primarily driven by net ex- ports, domestic demand is envisaged to be the main driver of growth in 2024. Private consumption growth continues at a brisk pace and private investment, is expected to recover slowly. Net ex- ports are also projected to contribute positively, driven mainly by services ex- ports. Growth in 2025 and 2026 is also expected to be led by domestic demand. Employment growth is set to mod- erate in the projection horizon, while wages are expected to pick-up in 2024, in view of the high inflation in the re- cent past, and a tight labour market. Annual inflation based on the Har- monised Index of Consumer Prices is projected to ease from 5.6% in 2023, to 2.9% in 2024, before reaching 1.9% by 2026. It is thus foreseen to remain above the Eurosystem price stability objec- tive this year due to lingering indirect effects through the response of wages to recent increases in input costs and profit margins. However, compared to previous projections, inflation has been revised down by 0.1 percentage point throughout the forecast period, in line with recent data outturns. e general government deficit-to- GDP ratio is set to decline throughout the projection horizon. e general government debt-to-GDP ratio is set to increase, and to reach 54.3% by 2026. When compared with the previous pro- jection round, the projected deficit and debt ratios were both revised down- wards. On balance, risks to economic activi- ty are tilted to the downside in 2024, as the ongoing geopolitical tensions could weigh on trade. In particular, disrup- tions to shipping around the Suez Ca- nal could give rise to some supply bot- tlenecks or longer waiting times, apart from possible higher costs. Risks are more balanced in the following years. Risks to inflation are also balanced. Upside risks relate mainly to ongoing geopolitical tensions especially disrup- tions to trade in the Red Sea, as well as the potential impact of Fit-for-55 meas- ures and extreme weather events. On the other hand, downside risks relate to a stronger pass-through from monetary tightening to domestic financial and real economic conditions, as well as the impact from the Government's measure to curb prices of selected food products in the short term. On the fiscal side, risks are tilted to the downside from 2024 (deficit-increas- ing). ese mainly reflect the possibility of higher-than-expected outlays on en- ergy support measures, in the event that commodity prices are higher than en- visaged. ey also reflect the likelihood of additional expenditure on pensions and public sector wages. ese risks are partly offset by the likelihood of a pick- up in the pace of fiscal consolidation in the outer years of the forecast horizon. Central Bank of Malta forecasts GDP to grow by 4.4% in 2024 TEVA Malta this week extended a warm welcome to the President of the Euro- pean Parliament Roberta Metsola at its plant in Bulebel, where she toured the state of the art facilities and engaged in a positive discussion with the site lead- ership and employees. e leader in the local pharmaceutical manufacturing sector since 1976, Teva Malta has a long success history bol- stered by ongoing investment and inno- vation over the years. It currently produces 2.3 billion tab- lets annually with 70% of its production designated for the European market, and hence directly contributes to Teva Europe's operations, including the sup- ply of generics, saving some €5.4 bil- lion each year from Europe's healthcare budget. Meeting key team members of Teva Malta, Metsola spoke about the impor- tance of the EU Single Market. "We should build on it without frag- menting it. We do not need to fence ourselves in," she said. "Our economy has grown over the years precisely be- cause we stood for the opposite." Metsola said that EU economies are competitive, and they need to remain so, with the green and digital transi- tions. "e European Green Deal is as much about security and boosting Europe's competitiveness as it is about the green transition. If we invest in the know-how, technology, and foster development of skills necessary for the twin transition, we will gain the competitive edge." Patrick Cachia, Managing Director of Teva Malta, thanked Metsola. "is visit holds great significance for us on many levels, not least in the con- text of the pivotal role that the EU and its policies play in enabling Teva to fur- ther its mission of providing access to quality medicines for all," he said. Highlighting Teva's commitment to wellbeing, innovation, efficiency, and sustainability, Cachia added: "In line with the Teva's group environmental sustainability strategy, Teva Malta has contributed to a reduction of nearly 16,000 Tons of CO2, and a cumulative energy saving equivalent to the con- sumption of 8,000 Maltese residential homes, over the previous decade. Ap- proximately 9% of energy consumed comes from a renewable source". Teva Malta introduced a number of energy reduction initiatives including the installation of 1,500 PV panels. It installed more than 700 LED light- ing units, acquired new and more effi- cient HVAC systems, and eliminated two diesel fuelled steam boilers. e company also installed solar water heaters to supply hot water to the lab- oratory and packaging department and has a system for the harvesting of rain- water in underground reservoirs. e site is certified to ISO 14001 Envi- ronmental Management Standard. EP President Roberta Metsola visits Teva Malta European Parliament President Roberta Metsola (left) with Patrick Cachia, Managing Director of Teva Malta and other staff