Malta Chamber President Perit David Xuereb said that the International Monetary Fund’s (IMF) economic forecast was being deemed “understated” based on the continuous feedback from Chamber members.
Perit Xuereb said that “The Malta Chamber understands that this forecast, as worked out by the IMF, is based on a timeframe of economic effects that are brought about by the COVID-19 pandemic which is significantly shorter than any estimate which the Chamber is deeming realistic at this stage.”
Speaking to Malta Today, Perit Xuereb claimed that "the percentage forecast is low, even by simply considering the relatively high contribution of tourism to the Maltese economy and the plausible possibility that this will be completely shut down for at least one third of the year.”
The IMF released its quarterly World Economic Update 2020 earlier this week, in which it projected that the global economy will contract by 3% as a result of the COVID-19 pandemic. For specific countries, it projected Malta’s economy to contract by 2.8% in 2020, growing to an impressive 7% in 2021. It also predicted a local unemployment rate of 5% in 2020, down to 4.4% in 2021.