The latest medium term economic forecast published by the European Commission paints an optimistic picture for the island of Malta's economy and a healthy climate for a property market that remains buoyant – according to TheMoveChannel portal.
Though not immune from the difficulties affecting the rest of the EU, Malta is relatively well placed compared to some of its larger neighbors, with continuing growth predicted, inflation at just over 2% and unemployment decreasing.
According to the European Commission's report, Malta's GDP is expected to grow by 1,3% next year and 2% in 2013. Unemployment is forecast to fall by 0,1% from 2010 to 2012, and by a further 0,1% in the following year.
Ray Woods, the head of UK based Malta Buy Property, comments: "The figures are very encouraging in the light of the current turmoil in the EU. Clarification of special taxation treatment for high net worth individuals by the Government has also removed a degree of uncertainty and offers an attractive regime for residency linked to Malta's excellent geographical links. But it does not mean that everything in the garden is rosy. The Malta Government has still to sort out some big issues with Air Malta the national carrier which is losing money... However, the success of low cost carriers like Ryanair and Easyjet has boosted both the tourism and property markets."
Woods concludes: "The economic fundamentals look pretty sound and provide an encouraging backdrop for the property market. Development land is in short supply and the population is increasing. Combine this with low unemployment rates, ready availability of mortgage finance and increasing interest from overseas - and the prospects for property sales and values is good."
Source: http://malta.themovechannel.com/news/919d5858-5920/