Malta’s trade deficit widens by €375.5 million in first 10 months of this year

Figures just released by the National Office of Statistics show that Malta’s trade deficit (the imbalance between money leaving the country to pay for imported goods or services, and money coming in to the country in payment for exported goods and services) has widened by €375.5 million between January and October this year.

A trade deficit happens when a country buys more than it sells. A tiny island like Malta is always going to have a trade deficit of some significance, because it has to buy almost everything it needs or wants, but has precious little to sell without creativity, investment and hard work (where does the sale of passports figure in the balance of payments, if at all?).

But when it widens a great deal in a short space of time, it’s cause for concern. Malta’s trade deficit now stands at €2,591 million, and you will see that an increase of €375.5 million in 10 months is a worrying chunk of that figure. The widening was caused by a drop of €72 million in the export figure, with a concomitant increase of €303 million in imports.

We are not allowed to discuss all this, however, as it is considered negative.