Malta’s Foreign Direct Investment (FDI) inflows for the first half of 2013 turned marginally positive after having been on a downward trend since 2010. In fact FDI in the first half of 2012 had even turned negative decreasing by €130 million.

The positive increase in FDI inflows was mainly the result of an increase in foreign owned equity capital, which increased by €79 million in the first half of 2013. Foreign owned equity capital had fallen significantly in 2011, and turned negative in 2012.

Furthermore, when looking at the classifications of FDI by economic activity, one notes that the manufacturing sector was the highest contributor towards the turnaround in FDI inflows in 2013. In fact, FDI flows in manufacturing were negative by €83 million in the first half of 2012 and turned positive by €39 million in 2013. Notable increases were also recorded by the transportation, accommodation and real estate sectors.

A geographical breakdown of FDI flows suggests that the largest contributors to FDI flows in Malta were the non-EU countries, which registered an inflow of €136 million in the first half of last year and which had been a negative amount by €63 million, a year before.

Commenting on these positive indicators the Minister for Finance Prof. Edward Scicluna said, “This turnaround in Foreign Direct Investment by the middle of 2013, like the other previously reported leading growth indicators, suggests that Malta’s economic stability and growth potential is attracting back investment by foreign investors. This augurs well for the future of the Maltese economy in terms of economic growth and employment potential.”

– Saturday, 15th February 2014