MALTA

NATURAL ENVIRONMENT: The area of the largest island, Malta, is 246 sq km; of Gozo, 67 sq km; and of Kemmuna, 3 sq km. The combined area of the uninhabited islets, Kemmunett and Filfla, is 0.3 sq km. The total area of Malta is 316 sq km. The axis of the island group runs from Malta in the southeast to Gozo in the northwest, with tiny Comino in between. The Maltese islands are low-lying limestone plateaus. The islands are generally treeless, and the land has a gently rolling surface. Many of the hills are terraced for farming, giving much of the countryside the appearance of giant steps. The islands reach their highest point in southwestern Malta’s Binġemma Hills, which rise to 239 m above sea level. The best natural harbors are found on Malta. Gozo lacks good harbors. Malta has hot, dry summers, and mild, humid winters. The mean temperature is 19°C. Average annual rainfall is modest—about 56 cm —although in some years rainfall is as low as 25 cm. Most precipitation falls between September and May. Malta has no permanent rivers or lakes. Pressures from farming, industry, and continued growth in tourism have placed a severe strain on Malta’s scarce water resources. Today, up to 70 percent of Malta’s water comes from plants that desalinate salt water.
ECONOMY: Malta has few valuable raw materials and a small domestic market for its products. For many years, the chief activity driving Malta’s economy was servicing the military bases maintained by the United Kingdom. The decline of British military spending in the late 1950s, and Malta’s independence in 1964, led to new initiatives to diversify the economy. Efforts to promote tourism and foreign investment in a variety of newer industries proved largely successful, and Malta’s economy expanded briskly in the 1990s, although the country experienced a period of weak economic growth following the global economic slowdown in 2001. In May 2004 Malta became a full member of the European Union. Malta’s annual budget deficits remain high by EU standards, however, and the nation has undertaken measures to reduce public expenditures. In 2004 Malta’s gross domestic product was $5.3 billion. Dry-dock facilities in Valletta were expanded in the 1970s, and ship construction and repair became a leading industry. Other important industries include textiles, electronic goods, food processing, printing and publishing, tobacco products, furniture, and pharmaceuticals. Malta is heavily dependent on trade, importing most of its food, energy needs, and raw materials, and exporting manufactured goods abroad. Since the 1970s, tourism has become the fastest growing and most important sector of the economy. Today, tourism generates about one-third of Malta’s annual gross domestic product. In 2004 the country had 1.2 million visitors, with many tourists arriving on cruise ships that dock in Valletta’s Grand Harbour. Due to its favorable location, Malta is also a transportation center with well-developed port facilities. Maltese farmers grow a wide range of crops, although agriculture remains of limited economic importance. Most of Malta’s crops are cultivated on terraced slopes. The principal crops include wheat, barley, potatoes, tomatoes, melons, a wide variety of vegetables, citrus fruits, and flowers and seeds. Some poultry, rabbits, cattle, goats, and sheep are raised. Because the population is dense and the soil is generally poor, Malta must import most of its food. Just 2 percent of the labor force is employed in the agricultural sector. In 2002 exports earned $2.1 billion, and imports cost $2.8 billion. Malta’s trade deficit makes the country highly dependent on foreign markets and services. The currency of Malta is the Maltese lira, divided into 100 cents. Currency is issued by the Central Bank of Malta.