Economy

Italy’s factory activity contracts by less than expected in May

Italian manufacturing activity shrank in May for the 20th month running but much less steeply than the month before, a survey showed on Monday, as Italy emerged from its lockdown…

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Malta: Pandemic to drop consumption by 80%, according to Muscat’s economic advice

Consumption of a wide range of goods and services is expected to fall by around 81 per cent as long as Malta has ongoing COVID-19 infections, an economic report by…

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Spain’s cabinet approve guaranteed minimum income scheme for vulnerable families

The Spanish Cabinet approved on Friday a guaranteed minimum income scheme set to help 850,000 vulnerable families. It is not the first welfare program of its kind in Spain: there…

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German economy likely to shrink 6.6% this year due to coronavirus

The German economy is likely to shrink by 6.6% this year as a consequence of the coronavirus crisis before growing by 10.2% in 2021, the Ifo Institute said on Thursday…

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Malta Insights

Annual inflation rate in April above EU average Malta’s annual inflation rate in April stood at 1.1 percent, the eighth highest among EU member states according to figures by Eurostat.…

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Malta: Creditreform confirms Malta’s rating at A+

The German credit rating agency, Creditreform Rating is forecasting that Malta’s economy will remain stable as it has confirmed Malta’s A+ rating. In a statement issued by the government, it…

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Malta: Business conditions decline to 2009 recession levels, Central Bank of Malta study shows

Business conditions in April were comparable to those during the economic recession of 2009, the Central Bank of Malta has said. The Central Bank's May economic update indicates that, in April,…

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World fuel demand falls

Countries around the world have reported steep falls in fuel demand as lockdowns to contain the spread of the novel coronavirus limit the movement of more than 4 billion people.…

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Malta: “Initiatives for businesses in the works; time to get back to normal” – Schembri

Minister for the Economy Silvio Schembri said that a number of initiatives to aid businesses are currently in the pipeline following the reopening of certain shops. He also said that…

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Malta: Malta had highest monthly increase in inflation

Malta experienced the highest monthly increase in inflation across the EU last April, figures out today show. Inflation went up by 2.9% in April when compared to March, Eurostat, the…

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Global air freight costs start stabilising – DHL

Air freight costs started stabilizing in late April after a surge due to the COVID-19 outbreak that grounded most passenger flights and forced freight forwarders to resort to chartering cargo…

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Staycation or Vacation – Summer holidays loading: The situation in Europe

Not more than four weeks ago as new cases of coronavirus spiked and peaked across Europe, the prospect of catching a plan or a ferry to another European destination seemed…

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Relaunch Made in Malta

Malta is in the transitional period that began with the reopening of business on May 4 after five weeks of lockdown. Announcing the restart, the Prime Minister spoke about a…

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The normality that never was

by Jesmond Saliba - CiConsulta The amusing thing about our collective drive towards the so-called ‘new normality’ is that the times before the Covid-19 crisis never felt like normalcy of…

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Malta: Alfred Sant says fast enlargement of the EU led to political and economic divergences

Labour MEP Alfred Sant has told the European Parliament that fast enlargement of the European Union has led to the spread of political and economic divergences within the Union. Alfred Sant…

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Emirates Group to slash 30,000 jobs

Emirates Group is considering slashing about 30,000 jobs, the deepest cuts yet in a global airline industry that’s been forced into near-hibernation by the coronavirus pandemic. The world’s biggest long-haul…

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Brazil’s LATAM airlines to lay off 1,400 employees

LATAM Airlines Group, the region's largest carrier, will lay off 1,400 employees, the company said on Friday, marking the first instance of a major Latin American airline laying off staff…

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German economy suffers worst contraction since 2009

The German economy contracted by 2.2% in the first quarter, its steepest three-month slump since the 2009 financial crisis as shops and factories were shut in March to contain the…

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Malta: ‘We cannot remain tied to COVID-19…we need to think ahead’ – Economy Minister

The country needs to start looking beyond the coronavirus pandemic that has brought the world to its knees, Economy Minister Silvio Schembri said on Thursday. In comments during a press…

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Economics vs Health in fighting Covid-19

by Matthew Bugeja Everything is about COVID19 at the moment. There is no escaping the unprecedented impact it has had on the entire planet in just three short months. Short…

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Foreign predatory buying of EU crucial industries

by Claire Hollier Considering the current economic crisis caused by the COVID-19 pandemic, there are signs of increased concern that European companies, notably those in critical sectors, are increasingly vulnerable…

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German industry expects unprecedented collapse in production

Germany’s mighty industrial sector, hit by the coronavirus pandemic, is expecting an unprecedented collapse in production, the Ifo institute said on Thursday, as it announced its index for this hit…

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Malta: VAT on masks, face shields to go down to 5% – Economy Minister

VAT on face masks and face shields will go down to 5% from the standard 18% through a legal notice which should be published today, Economy Minister Silvio Schembri said…

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Malta: EU expects Malta’s economy to return to pre-pandemic levels by next year

Malta's economy will be "severely affected" by the coronavirus pandemic this year but the impact will be less than the EU average, according to the European Commission's Spring forecast. In its…

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We owe it to employers

by Jesmond Saliba May is ushering in a new Spring over Europe as most countries are finally taking their small steps forward from what felt like an interminable hibernation. The…

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Malta: ‘Dead’ tourism sector needs €2 billion to revive – Robert Arrigo

Malta’s tourism industry is in dire straits and will require a major investment if it is to return to normal after COVID-19, PN MP Robert Arrigo has warned. Source: Malta…

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Malta: Certain retail shops decide to remain closed

Although shops and commercial establishments opened on Monday, many owners still decided not to open...or to open with reduced hours. The retail shops which opened include clothing and shoe shops,…

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Malta: Coronavirus – Survey shows Maltese believe economy will recover within 12 months

A survey has showed that the Maltese believe that it will take up to 12 months for the local economy to recover from the Coronavirus pandemic. Audit, tax and advisory…

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Malta: Chamber of SMEs appeals to shoppers, workers and landlords: ‘be patient’

Consumers, workers and landlords will have to be patient as it will take time for businesses to get back onto their feet once they reopen, the Malta Chamber of SMEs…

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Spain’s GDP falls by 5.2% in Q1 2020

Spain’s Gross Domestic Product (GDP) fell 5.2% in the first quarter of 2020 as a result of coronavirus confinement measures, according to an advance report released by the National Statistics…

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Malta: Malta under COVID-19 cannot function without lowest-paid, essential workers – Graffitti

The COVID-19 crisis has made it clear that workers with the lowest salaries – health workers, cleaning personnel, waste collectors, drivers and persons involved in food distribution – are in…

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Portugal to ease lockdown measures ‘sector-by-sector’

Portuguese Prime Minister Antonio Costa on Thursday announced a sector-by-sector plan to gradually lift lockdown measures imposed six weeks ago to combat the coronavirus outbreak. Starting on May 4, the…

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Malta: On the eve of Workers Day, the Prime Minister visited a Maltese company which exports medical equipment across the globe

Prime Minister Robert Abela, accompanied by the Minister for Economy, Investment and Small Enterprises, Silvio Schembri, and Minister within the Office of the Prime Minister Carmelo Abela, visited the Maltese…

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Cambridge University study shows economic damage could be worse without lockdown and social distancing

The worst thing for the economy would be not acting at all to prevent disease spread, followed by too short a lockdown, according to research based on US data. There is…

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France enters recession

France's gross domestic product contracted 5.8 percent in the first quarter and is officially in a recession, mainly because of the coronavirus lockdown imposed since mid-March, the national statistics agency…

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Italy’s credit rating cut to practically junk status

Italy’s credit rating has been cut to within one downgrade of junk status as soaring public debt threatens to ignite tensions in the eurozone. Borrowing costs for the virus-stricken country…

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US economy shrinks at fastest rate since 2008

The US economy suffered its most severe contraction in more than a decade in the first quarter of the year, as the country introduced lockdowns to slow the spread of…

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Malta: The ‘new normal’ scenarios coronavirus exit planners are considering

Restaurant tables a ‘safe’ distance apart, reduced headcounts at nightclubs and limited classroom sizes. These are some of the measures being considered by a small team of government ministers and…

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When oil became waste

By David Gaffen The magnitude of how damaged the energy industry is came into full view on April 20 when the benchmark price of U.S. oil futures, which had never…

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Canadian post Covid-19 economic plans not based on immunity of infected people

Plans underway to restart the economies of Canadian provinces do not depend on presuming people who become infected with coronavirus develop immunity to it, Canadian Prime Minister Justin Trudeau said…

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Malta: COVID-19 starts to bite as government finances go under by €300 million

The government deficit has more than doubled in the first three months as the country feels the pinch of the COVID-19 pandemic, figures out today show. The deficit in government’s…

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Malta: Government registered a €71 million surplus in 2019

In 2019, the government registered a surplus of €71 million, equivalent to 0.5% of GDP, the National Statistics Office has said. "General Government debt amounted to €5,695.6 million or 43.1%…

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Global business leaders expect things to get worse before they get better due to coronavirus

Global business leaders are preparing for a drawn-out U-shaped recession due to the impact of coronavirus and many fear their companies won’t survive the pandemic, a survey of thousands of…

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Malta: MEA calls for revision in utility rates for households and businesses

The Malta Employers’ Association has called on the government to review utility rates for both businesses and households with immediate effect. In a statement on Tuesday, the MEA put forward…

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Malta: Fitch expects Malta deficit to be 8.2% in 2020, debt up by €2 billion

Credit rating agency Fitch has revised Malta’s outlook to stable, from positive, and affirmed its A+ credit rating. Fitch believes Malta’s real GDP will contract by 5.9% in 2020, a…

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21 million Italians living in hardship, 10 million have almost zero income, 7 million living on a gross monthly income of €500

Some 21 million Italians are in economic difficulty due to the coronavirus and half of them have no income. This is what emerges from a study conducted by the University of…

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