Economy of Malta

The strengths of the Economy of Malta are its limestone, a favourable geographic location, and a productive labour force. Malta produces only about 20% of its food needs, has limited freshwater supplies, and has no domestic energy sources. The economy is dependent on foreign trade, manufacturing (especially electronics), tourism and financial services. In 2003, over 1.2 million tourists visited the island^[1]. Per capita GDP of $23,200 places Malta just above the middle of the list of European Union (EU) countries in terms of affluence. The island has joined the EU in 2004 despite having been divided politically over the question earlier. A sizable budget deficit was a key concern, but recent initiatives by government have changed the situation dramatically enough for the country to be admitted into the eurozone as of 1 January 2008. (footketballs)

==Economic history==(gugerut) Prior to 1800 the majority of Maltese were engaged in agriculture or fishing, although there was significant trade. Until then, Malta had very few industries except the cotton, tobacco, and shipyards industry. The dockyard was later used by the British for military purposes. At times of war, Malta's economy prospered due to its strategic location.

During the Napoleonic Wars (1800–1815), Malta's economy prospered and became the focal point of a major trading system. In 1808, two-thirds of the cargo consigned from Malta went to Levant and Egypt. Later, one-half of the cargo was usually destined for Trieste. Cargo consisted of largely British and colonial-manufactured goods. Malta's economy became prosperous from this trade and many artisans, such as weavers, found new jobs in the port industry.

In 1820, during the Battle of Navarino, which took place in Greece, the British fleet was based in Malta. In 1839, the Peninsular and Oriental Steam Navigation Company and East India Companies used Malta as a calling port on their Egypt and Levant runs.

In 1869, the opening of the Suez Canal benefited Malta's economy greatly as there was a massive increase in the shipping which entered in the port. The economy had entered a special phase. The Mediterranean Sea became the "world highway of trade" and a number of ships called at Malta for coal and various supplies on their way to the Indian Ocean and the Far East.

From 1871 to 1881, about 8,000 workers found jobs in the Malta docks and a number of banks opened in Malta. By 1882, Malta reached the height of its prosperity.

However, the boom did not last long. By the end of the 19th century, the economy began declining and by the 1940s, Malta's economy was in serious crisis. This was primarily due to the invention of large ships which had become oil-fired and therefore had no need to stop in the Grand Harbour of Malta to refuel. The British Government had to extend the dockyard.

At the end of World War II, Malta's strategic importance had reached a low point. Modern air warfare technology and the invention of the atomic bomb had changed the importance of the military base. The British lost control of the Suez Canal and withdrew from the naval dockyard, transforming it for commercial shipbuilding and ship repair purposes.

Get around Malta

By bus

One of Malta's joys (at least in small doses) is the wonderfully antiquated public bus system, consisting of 1950s-era exports from England usually kitted up with more chintz than a Christmas tree plus icons of every saint in the Bible and then some. Fares are very cheap and even the longest ride across the island costs less than €1.30; the only catch is that almost all buses radiate out from Valletta, so you may have to detour back to the capital to reach your next destination. A short question - "To Valletta?" - to the driver when you get on will help you confirm your ending destination, but don't expect them to be friendly, by any means.

Be sure to have change to avoid irritation or even being denied the ride (a ticket typically costs 20-25c and people trying to pay with a €50 note will elicit an unpleasant response), and be sure not to get short-changed as this seems to be a habit of the drivers. It's best to find out which bus stops are regular stops, as the bus system does NOT run on any sort of schedule; if you wait at the wrong stop, you could be standing there for upwards of an hour. However, many stops have buses with varying routes that pass by every 10 minutes or so, again, with many of them headed to the capital.

By taxi

Malta's taxis are a ravenous lot and fares are quite expensive. There are black taxis, which have to be called in advance, and white taxis, which can pick you up off the street. Both have meters that are uniformly ignored, figure on €12 for short hops and not much more than €23 for a trip across the island. Also note that plenty of black taxis break the rule when nobody's looking, and this is the cheapest way to hitch a cab ride. All taxis must have the third letter of their licence plate with letter Y otherwise these aren't authorised taxis and might not be very safe.

By car

You can rent a car on the island. However, unless you are used to driving on the left side of the road and can handle unpredictable driving, you would be better off with a taxi or bus. A good map is a must. However it can be hard to find taxis and they are very expensive, and get used to rip offs. The best way to see around is to rent a car, but beware that even if you have a good map, you will get lost for sure, because the road signs are not good at all. Either there are not enough signs or even they show signs, they are misleading -- for example, they often do not put the major places' names at all. It is very annoying even for locals.

Petrol, as almost everywhere, will seem expensive by US standards.

It is always best to pre-book your car rental online as this works out a lot cheaper than booking when you arrive. According to the Mediterranean markets, Malta has very low rates for car rental. Any driver and additional drivers must take with them their driving licenses in order to be covered for by the insurances provided by the local car rental supplier.

By ferry

There is the regular ferry service between Ċirkewwa on Malta and Mġarr on Gozo, it goes every 45 minutes in the summer and almost as often in the winter. You buy a return ticket at the Malta end for about €4.70. There are also irregular services to Comino.

By seaplane

Regular flights between Valletta Grand Harbour and Mgarr by Harbourair started recently. There is also a planned service to Sicily. The company also offers scenic flights for around 90EUR that take 30mins and provide beautiful views of the Maltese islands. Flights start in Valletta's grand harbor. Check-in and ticket office is at the sea passenger terminal, on the very end of the "Valletta waterfront", behind the cruise ship terminals.

By helicopter

Scheduled helicopter service between Malta and Gozo has been terminated.

By bike

Renting a bike in Malta is a very common and popular practice. It doesn't cost much, but offers enough flexibility to explore.