- published: 17 Jun 2016
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The strengths of the Economy of Malta are its limestone, a favourable geographic location, and a productive labour force. Malta produces only about 20% of its food needs, has limited freshwater supplies, and has no domestic energy sources. The economy is dependent on foreign trade, manufacturing (especially electronics), tourism and financial services. In 2003, over 1.2 million tourists visited the island.
Per capita GDP of $23,200 places Malta just above the middle of the list of European Union (EU) countries in terms of affluence. The island joined the EU in 2004. A sizeable budget deficit was a key concern, but recent initiatives by government have changed the situation allowing for the country to be admitted into the eurozone as of 1 January 2008.
Prior to 1800 the majority of Maltese were engaged in agriculture or fishing, although there was significant trade. Until then, Malta had very few industries except the cotton, tobacco, and shipyards industry. The dockyard was later used by the British for military purposes. At times of war, Malta's economy prospered due to its strategic location.
Malta i/ˈmɒltə/, officially known as the Republic of Malta (Maltese: Repubblika ta' Malta), is a Southern European country consisting of an archipelago situated in the centre of the Mediterranean, 80 km (50 mi) south of Sicily, 284 km (176 mi) east of Tunisia and 333 km (207 mi) north of Libya, with Gibraltar 1,755 km (1,091 mi) to the west and Alexandria 1,508 km (937 mi) to the east. Malta covers just over 316 km2 (122 sq mi) in land area, making it one of the world's smallest states. It is also one of the most densely populated countries worldwide. The de facto capital city of Malta is Valletta; the largest town, Birkirkara. The main island comprises many towns, which together form one Larger Urban Zone (LUZ) with a population of 368,250 according to Eurostat. The country has two official languages, Maltese (constitutionally the national language) and English.
Throughout history, Malta's location has given it great strategic importance, and a succession of powers including the Phoenicians, Greeks, Romans, Arabs, Normans, Aragonese, Habsburg Spain, Knights of St John, French and the British ruled the islands. Malta gained independence from the United Kingdom in 1964 and became a republic in 1974, whilst retaining membership in the Commonwealth of Nations. Malta was admitted to the United Nations in 1964 and to the European Union in 2004. Malta is also party to the Schengen Agreement and in 2008 it became part of the eurozone.