Ministry of Finance, the Economy and Investment The world economy - PowerPoint PPT Presentation

Ministry of Finance, the Economy and Investment

The world economy Real GDP Source: Eurostat 2011 2012 2013 2011 2012 2013 Member State Member State Actual Estimate Estimate Actual Estimate Estimate EU27 1.5 (0.3) 0.4 Ireland 1.4 0.4 1.1 EA17 1.4 (0.4) 0.1 Italy 0.4 (2.3) (0.5) Latvia 5.5 4.3 3.6 Austria 2.7 0.8 0.9 Lithuania 5.9 2.9 3.1 Belgium 1.8 (0.2) 0.7 Luxembourg 1.7 0.4 0.7 Bulgaria 1.7 0.8 1.4 Malta 1.9 1.0 1.6 Cyprus 0.5 (2.3) (1.7) Netherlands 1.0 (0.3) 0.3 Czech Republic 1.9 (1.3) 0.8 Poland 4.3 2.4 1.8 Denmark 1.1 0.6 1.6 Portugal (1.7) (3.0) (1.0) Estonia 8.3 2.5 3.1 Romania 2.5 0.8 2.2 Finland 2.7 0.1 0.8 Slovakia 3.2 2.6 2.0 France 1.7 0.2 0.4 Slovenia 0.6 (2.3) (1.6) Germany 3.0 0.8 0.8 Spain 0.4 (1.4) (1.4) Greece (7.1) (6.0) (4.2) Sweden 3.9 1.1 1.9 Hungary 1.6 (1.2) 0.3 United Kingdom 0.9 (0.3) 0.9

The world economy Real GDP – 2012 (estimated) Source: Eurostat 4.3 2.9 2.4 2.5 2.6 0.1 0.2 0.4 0.4 0.6 0.8 0.8 0.8 0.8 1.0 1.1 EL PT IT CY SI ES CZ HU EA17 NL UK EU27 BE FI FR IE LU DK DE AT BG RO MT SE PL EE SK LT LV (0.2) (0.4) (0.3) (0.3) (0.3) (1.4) (1.3) (1.2) (2.3) (2.3) (2.3) (3.0) (6.0)

The world economy Real GDP – 2013 (estimated) Source: Eurostat 3.6 3.1 3.1 1.4 1.6 1.6 1.8 1.9 2.0 2.2 0.7 0.7 0.8 0.8 0.8 0.9 0.9 1.1 0.1 0.3 0.3 0.4 0.4 EL CY SI ES PT IT EA17 NL HU FR EU27 BE LU DE FI CZ AT UK IE BG MT DK PL SE SK RO EE LT LV (0.5) (1.0) (1.7) (1.6) (1.4) (4.2)

International trade Imports and exports Source: National Statistics Office – All figures in € ‘000,000 Imports 5,332.4 Imports 4,760.6 Imports 4,328.1 Exports Imports 3,815.4 3,608.7 Exports 3,166.6 Exports 2,806.0 Exports 2,374.5 2010 2011 2011 (Jan-Sep) 2012 (Jan-Sep)

Employment Gainfully occupied 151,559 149,764 146,946 145,453 144,447 142,836 139,653 137,937 137,592 2004 2005 2006 2007 2008 2009 2010 2011 2012 (Jun)

Employment creation Private and public sectors 110,235 108,641 106,322 103,659 103,618 99,638 96,355 93,175 91,224 90,541 89,975 Private Sector Public Sector 47,888 47,398 46,686 45,538 43,595 42,541 41,794 41,123 40,829 40,624 40,854 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (May)

Employment creation Persons still working at pensionable age Source: National Statistics Office 11,602 10,304 10,206 9,036 8,156 Dec-08 Dec-09 Dec-10 Dec-11 Nov-12

Employment creation Unemployment – September 2011 Source: Eurostat 22.4 17.8 17.0 14.7 14.6 13.6 13.1 11.4 11.2 9.6 9.8 9.8 10.3 10.9 7.2 7.3 7.5 7.7 7.7 8.2 8.3 8.5 8.8 5.8 6.3 6.5 4.0 4.5 4.9 AT NL LU DE MT CZ SE BE DK RO FI UK SI CY IT FR PL EU27 EA17 HU BG EE PT SK IE LT LV EL ES

Employment creation Unemployment – September 2012 Source: Eurostat 25.9 25.1 15.9 15.7 15.1 13.9 12.9 12.4 12.2 11.6 10.8 10.8 10.6 10.6 10.1 10.0 8.4 7.9 7.9 8.4 7.8 7.4 7.1 6.4 6.8 5.4 5.2 5.4 4.4 AT NL LU DE MT CZ SE BE DK RO FI UK SI CY IT FR PL EU27 EA17 HU BG EE PT SK IE LT LV EL ES

The world economy Tax on labour – 2010 Source: European Commission 42.6 42.5 41.0 40.5 39.3 39.4 39.0 39.0 38.1 37.4 37.0 36.9 35.0 36.0 34.8 33.0 32.5 32.0 32.0 31.7 31.3 30.1 27.4 27.0 26.1 25.7 24.4 23.4 21.7 MT PT BG UK IE CY RO PL EL LT LU SK LV ES DK SI EU27 NL EE DE EA17 CZ SE FI HU AT FR BE IT

Inflation RPI Source: National Statistics Office 6 5 4 3 2 1 0 -1 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 12-month moving average rate Annual Rate

Tourism Arrivals and bed nights Source: National Statistics Office 2012 10,021,677 2011 2010 9,357,148 9,015,354 2009 8,031,325 2012 2011 2010 2009 1,144,537 1,127,897 1,056,876 935,885 Arrivals Nights

Tourism Spend Source: National Statistics Office 2012 2011 2010 2009 999,715,000 1,021,677,000 916,100,000 751,009,000 2012 2010 2011 2009 943 886 867 802 Direct spend Spend per person

Financial situation

Financial estimates Public debt 71.55% 70.89% 70.43% 69.06% 68.96% 68.81% 66.99% 63.80% 62.20% 2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Revised 2013 Estimated 2014 Estimated 2015 Estimated

Financial estimates Deficit 4.80% 3.87% 3.77% 2.72% 2.34% 2.30% 1.74% 2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Revised 2013 Estimated

Finacial estimates Consolidated fund All figures in € 000 2011 Actual 2012 Approved 2012 Revised 2013 Estimates Tax Revenue 2,323,351 2,541,850 2,515,437 2,710,778 Non-Tax Revenue 320,480 419,150 352,937 415,436 Total Revenue 2,643,831 2,961,000 2,868,374 3,126,214 Recurrent Payments 2,361,284 2,450,295 2,498,569 2,561,852 Interest Payments 212,462 230,605 226,704 235,282 Total Recurrent Expenditure 2,573,746 2,680,900 2,725,273 2,797,134 Recurrent Deficit 70,085 280,100 143,101 329,080 Capital Expenditure 288,695 425,327 322,828 424,480 Total Expenditure 2,862,441 3,106,227 3,048,101 3,221,614 Ż Deficit (218,610) (145,227) (179,727) (95,400) Central Government Adjustments 41,631 (8,673) 21,327 (27,500) Żbilanċ tal-Gvern Estiż (176,979) (153,900) (158,400) (122,900) Gross Domestic Product 6,499.17 6,776.00 6,778.63 7,070.11 % of Gross Domestic Product -2.72% -2.27% -2.34% -1.74%

Revenue Tax revenue All figures in € 000 2012 Revised 2013 Estimate Variations (€) Income Tax 840,000 923,000 83,000 Social Secutiry 632,000 683,000 51,000 Direct Taxation 1,472,000 1,606,000 134,000 Customs & Excise Duties 222,400 239,950 17,550 Licences, Taxes & Fines 239,437 253,828 14,391 V.A.T. 581,600 611,000 29,400 Indirect Taxation 1,043,437 1,104,778 61,341 Ż Total Tax Revenues 2,515,437 2,710,778 195,341

Revenue Other revenue All figures in € 000 2012 Revised 2013 Estimate Variations (€) Fees of Office 33,063 32,116 (947) Reimbursements 27,359 28,594 1,235 Public Corporations 815 815 0 Central Bank of Malta 46,000 48,000 2,000 Rents 28,460 30,645 2,185 Dividends on Investments 20,250 23,750 3,500 Interest 8,077 4,304 (3,773) Grants 123,831 224,892 101,061 Miscellaneous Receipts 65,082 22,320 (42,762) Total Non-Tax Revenues 352,937 415,436 288

Expenditure Recurrent and capital All figures in € 000 2012 Revised 2013 Estimate Variations (€) Personal Emoluments 609,852 628,232 18,380 Operational & Maintenance Expenses 117,713 124,205 6,492 Programmes & Initiatives 1,550,979 1,581,000 30,021 Contribution to Government Entities 220,025 228,415 8,390 Recurrent Total 2,498,569 2,561,852 24,872 Capital Expenditure 377,320 476,276 98,956

Budget 2013

The Maltese economy and the international situation The economy and job creation • The Maltese economy is expected to grow by 1.2% this year. The EU economy is expected to shrink by 0.4%. • During 2012, a number of economic sectors experienced a growth in value added, including financial services, ICT, professional, technical and scientific services, together with arts, entertainment and leisure. • Malta is experiencing very positive results in tourism while a number of factories have announced expansions. • This is being translated into the creation of new jobs. At 6.5%, malta has the fifth lowest unemployment rate in Europe. Unemployment in the EU stands at 10.5%, going up to 11.4% in the eurozone.

The Maltese economy and the international situation The economy and job creation • Malta has strengthened its financial position, leading the European Commission to close off the Excessive Deficit Procedure Against it. • A draft bill will propose the adoption of a modern, transparent framework to strengthen fiscal translation. • 12 month inflation in September has gone down to 2.3%. • Cost of Living Adjustement of € 4.08 .

Employment, enterprise and tourism More incentives towards enterprise • Since 2008, 167 industrial projects were approved, carrying an investment of € 355 million , creating 3,860 jobs over three years. • € 45 million in assistance to 6,000 businesses. • Extension of “ 20 million to industry ” scheme: € 42 million in schemes to support international competitiveness, innovation, e-Business, R&D, environment and start-ups. Allocation of 4 th calls to 200 further businesses. • Extension of High Energy Users Scheme to Gozitan industry. • Government will insisting on preserving Aid Intensities to industry following 2014-2020 Financial Perspectives.