“EU expects Malta’s economy to grow faster than any other in 2024…”

Malta is set to enjoy the strongest economic growth among EU countries this year and next year, even though it will moderate from 2022, according to the autumn forecast of the European Commission, issued.

The commission said the island’s GDP growth is expected to reach 4.0% this year from 6.9% in 2022. Growth next year is also projected at 4%. The Budget  projected a 2024 growth rate of 4.2%.

Private consumption has decelerated slightly due to higher inflation and a slowdown in investment following a surge in aviation sector investment in 2022. Economic growth is forecast to be 4.2% in 2025.

The commission observed that while energy prices are set to remain unchanged until 2025 due to government measures, but inflation is still projected to reach 5.7% this year and then moderate to 3.3% in 2024 and 3.1% in 2025.

The general government deficit is expected to decrease gradually from 5.7% of GDP in 2022, and to stand at 4.1% in 2025. Public debt is forecast to reach 57% of GDP in 2025.

The commission said Malta is expected to maintain a high pace of employment and population growth, a key factor driving the outlook for consumption despite the expected weak recovery in real wages.

db Group sees strong upturn in finances in half-yearly results

Db Group had registered a significant upturn in turnover in the six months between April and September, when compared to the same period in 2022.

The group’s Condensed Interim Financial Statements for the six months ended 30 September 2023 show that db Seabank Resort & Spa in Mellieħa registered an increase in turnover of 16% of the 2022 figures, with revenues of €17.4 million compared to €15 million in 2022.

The db Hotel San Antonio Resort & Spa registered a turnover of 20% of the 2022 figures at €14.5 million in 2023 compared to €12.1 million in 2022.

12-month forecast

Based on the results for the six months ended 30 September 2023, db Group is forecasting revenue to increase to €80 million (2022: €71 million) for the financial year ending 31 March 2024.

These projections are based primarily on account of an almost complete recovery in the hospitality industry and a positive performance from the operations of Lifestyle Group.

The group is not expecting material changes to depreciation, amortisation and net finance costs.

As for share of results of associates, the group is projecting similar results primarily because of the expected earnings to be generated by Malta Healthcare Caterers Limited.

The group’s cash balances increased to €54 million as at 31 March 2023.

Db Group believes the Ukraine-Russia conflict will not affect the results as its exposure of business from these two countries is minimal.

However, whilst the group has no direct business linkages with these two countries, it is monitoring the effect that this conflict may have.

The increase in the price of goods and services is another challenge the group is facing, but notwithstanding this the projections show further strengthening of its cash balances to around €58 million by March 2024.

In view of the measures undertaken by the group, the projections outlined above and the cash reserves accumulated by the group in the past years, the directors are of the opinion that the issuer will have the necessary funds to finance the interest falling due in April 2024 and going forward.

Malta Company Announcements:

PG plc

PG plc announced that its Board of Directors is scheduled to meet on Tuesday, 18^th December 2023 to consider and approve the interim financial statements for the six-month period ended 31^st October 2023.

Maltapost plc

Maltapost plc announced that its Board of Directors is scheduled to meet on Tuesday, 19^th December 2023 to consider and approve the financial statements for the year ended 30^th September 2023.

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