VALLETTA, July 10 (Xinhua) -- Malta's economy is projected to grow the fastest in the European Union (EU), according to the latest economic forecast released by the European Commission on Wednesday.
Malta's GDP growth is forecasted to moderate in 2019 and 2020 to 5.3 percent and 4.8 percent respectively, said the release.
Malta's economy grew by 6.7 percent in 2018. The structural shift towards a fast-growing, internationally-oriented services sector is the main factor behind Malta's recent economic success.
The European Commission said the European economy is set for its seventh consecutive year of growth in 2019, with all member economies due to expand.
The forecast for euro area GDP growth in 2019 remains unchanged at 1.2 percent, while that for 2020 has been lowered slightly to 1.4 percent.
The GDP forecast for the EU remains unchanged at 1.4 percent in 2019 and 1.6 percent in 2020.
"Growth in the euro area was stronger than expected in the first quarter of the year due to a number of temporary factors such as mild winter conditions and a rebound in car sales. It also benefited from fiscal policy measures, which boosted household disposable income in several Member States," said the Commission.
However,the Commission warned that the near-term outlook for the European economy is clouded by external factors including global trade tensions and significant policy uncertainty.
The Commission publishes four economic forecasts each year. The winter and summer forecast only cover annual and quarterly GDP and inflation for the current and following year for all member states and the euro area, as well as EU aggregates.
