The economy of Malta is largely based on financial services, manufacturing and tourism. Agriculture and fishing were the main economic activities of Malta before 1800, with shipyards, cotton and tobacco being among the most important sectors. Malta’s strategic location and limestone have influenced the economy
Malta is a country which is considered to be very open to foreign investment and trade which have been contributed to the economy of Malta. Malta’s banking system is rated as one of the most secure in the EU region. In 2008, the Euro was adopted into the Malta economy.
In the 1800s the economy of Malta was successful and became concentrated on trade, artisan crafts and port facilities; a lot of cargo trade took place between Malta, Levant and Egypt.
Only roughly 20% of Malta’s food is produced domestically. Malta economy has been partly affected by its limited sources of fresh water sources and energy. Consequently, with limited resources for a strong agricultural base, Malta economy relies on the manufacture of pharmaceuticals and electronic items, tourist arrivals and foreign trade. In 2007, the manufacturing sector of Malta economy consisted of wood and wood products, fabricated metal products, paper and paper products, radio, television and communication equipment, chemical and chemical products, medical, precision and optical instruments, to name a few.
Malta economy has experienced rapid growth in investments in the production of goods and services for export. This growth in Malta economy has been due to the presence of infrastructure and local resources, positive policies for industrial activities which benefit Malta economy, and an attractive business environment for international investments which help to expand Malta economy.
Various measures were put in place by the government for the benefit for the Maltese economy. The aim of these measures was to increase the competitiveness and stability of Malta’s financial sector which is important to the Maltese economy. Malta company formation and banking have helped the Maltese economy significantly and continue to be a major factor in Malta economic development.