VALLETTA, May 3 (Xinhua) -- Malta's economic growth is expected to remain vigorous over the coming months, according to the European Commission's spring forecast released on Thursday.
According to the Commission, Malta's economy was among the fastest growing in the EU, with record-low unemployment and moderate wage growth.
The current account and the budget balances are set to remain in surplus, the Commission said.
It added that domestic demand is expected to become the main driver of growth in 2018, with expansion in private consumption and the recovery in investment expected to be the main drivers.
Real gross domestic product (GDP) growth is forecast to average 5.8 percent for 2018, assuming favorable labor market conditions and high consumer confidence are maintained.
Tourism, remote gaming and the professional services sectors are expected to sustain the government's current account surplus.
Investment the following year is expected to pick up further through support from projects in the health, technology, and telecommunication sectors. Real GDP is set to increase by 5.1 percent.
The report states that the country's labor supply has helped keep wage pressures contained, while unemployment will continue to remain low over the coming two years.
Headline annual Harmonized Index of Consumer Prices (HICP) inflation is forecast to gradually pick up to reach 1.8 percent in 2019, driven by price pressures in the services component.
Debt-to-GDP ratio is forecast to decline further to 43.4 percent by 2019, having fallen to 50.8 percent in 2017.