Most respondents to a survey on changes in the pattern of spending of Maltese households during the COVID-19 pandemic expect the economy to recover within a year or less.

The study, by audit, tax and advisory firm Grant Thornton Malta, was conducted between April 13 and 24 on a sample of 517 respondents, focused on three main economic areas: general consumption, travel, and real estate.

Movements in expenditure.

According to the survey, 84% of the respondents expect the local economy to recover within 12 months or less.

Groceries and communication services registered the highest increase in expenditure. At the same time, the purchasing of retail clothing and footwear decreased drastically, mainly due to the lockdown measures imposed by the health authorities.
 
The closing of shops caused a significant shift towards online purchasing with 45% of the respondents avoiding visits to communication outlets, buying services online instead. Around 25% shifted all their expenditure on restaurants, take-aways, education, electronic and recreational goods to online.
 
Although the travel sector has been heavily affected by the pandemic, 52% of respondents intend to travel as frequently as they did before once airports and ports re-open. 
 
The property market has also been impacted by the emergency, with 41% of property holders noticing a large decline of interest in their properties, 19% a slight decline, and 37% no change at all.

Of those property holders who, at the time of the survey, had properties occupied by tenants, 54% reduced rates or waived the rent payment. In comparison, 46% did not reduce the rent rates.