What Malta plans to measure instead of GDP to track success
Vision 2050 presents three new metrics, with Malta-specific targets for each
Malta will look beyond GDP to measure its success and instead focus on tracking wellbeing, disposable income and education to measure its progress in the years to come, the government has said.
This announcement was made on Tuesday while unveiling Vision 2050, the government’s vision for the country over the next 25 years.
The vision promises to deliver “a safe and resilient nation, inspired by heritage and driven by progress, fostering a healthy quality of life for all”, pointing to more measured economic growth over the coming years.
As part of that plan, the government says it will no longer rely solely on tracking Gross Domestic Product growth as a byword for success.
Instead, policymakers have identified three established global metrics to focus on, and set Malta specific targets for each.
Metric no. 1: Human Development Index
The first is the United Nations’ Human Development Index, a global index that ranks nations according to life expectancy, education levels and income.
Malta currently ranks 25th in the index, bouncing from a low of 39th place (in 2014) to a high of 23rd (in 2021) over the past decade.
The government aims to move Malta into the top 20 ranked nations by 2035, eventually climbing to the top 10 by 2050.
Metric no. 2: Median income
Although Malta compares well to several of the top-ranking countries when it comes to some metrics, such as life expectancy, it trails badly in others, particularly when it comes to income levels.
But the government has also set raising income levels in its sights, adopting the EU’s median disposable income as a second metric by which to measure success.
Malta’s median wage of €18,940 is currently slightly below the EU average. But the government says that by 2035 this will rise to above average, reaching 115% of the median wage across Europe.
In practice, this would place Malta’s wages alongside those of France today.
This will rise to 135% by 2050, the vision says, meaning that Malta’s wages by 2050 would be akin to those of Sweden and Finland today.
Metric no. 3: Life satisfaction
Meanwhile, EU-wide measures on quality of life will be the third metric the government says it will use to assess the country's progress.
Malta currently ranks 13th in Europe for life satisfaction, a notch above the EU average, with a score of 7.4 out of 10.
By 2035 Malta will sit among the top ten ranked countries, eventually cracking the top 5 by 2050, the government says.
Economy to grow, but at a steadier pace
GDP will remain an important metric to track Malta’s economic performance, the vision says.
But economic growth is expected to ease, growing by 5% per year over the next decade, compared to the frenzied growth of 10% each year since 2013.
Prime Minister Robert Abela unveiling the Vision 2050 strategy in Gozo on Tuesday. Photo: Robert Abela/FacebookIn 2013, Malta’s economy generated some €8.1 billion, rising to €20.5bn a decade later. By 2035, this will hit some €38b, mostly driven by seven economic sectors including financial services, aviation and high-end manufacturing.
Tourism and construction, two of Malta’s most contentious sectors are also expected to grow, albeit at a slower pace.
Tourist arrivals will hit 4.5m by 2035, almost a million more than today, but the rate at which tourist numbers will increase will slow. And the government hopes to double tourists’ nightly expenditure over the next decade.
Meanwhile, construction will also grow at a slower pace, at a rate of 6 to 7%, compared to 10% since 2013.