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THE ECONOMIC SCENE

AT A GLANCE:

Gross Domestic Product US$5 billion
GDP per head: US$13,000
Annual growth: 4%
Inflation: 2.8%
Major industries: Tourism, electronics, ship repair, construction
Major trading partners: Italy, Germany, UK
European Union membership: applicant, membership expected by 2004
   

ECONOMIC HISTORY

Malta has a higher standard of living than surrounding Mediterranean countries, but this economic well-being has required artificial stimulation. Historically, Malta's significance has stemmed from its strategic location, commanding the narrow stretch of the Mediterranean Sea between Sicily and Tunisia. A British colony until 1964, it served as an important naval base. The majority of its economy stemmed from the military until Britain removed most of its naval forces from the islands.

 


Currently, the bulk of Malta's internally generated revenues come from foreign-owned industry and tourism. After the British navy left, the government paid considerable attention to social measures such as public housing, welfare payments, and medical facilities.

Tourism accounts for more than one third of the country's national income. More than one million people visit Malta annually. The second largest industry is agriculture. Crops such as potatoes, onions and grapes are are exported to mainland Europe. Ship repairs done at the dockyards on Malta still provide an appreciable portion of the country's income, however this is declining, reflecting the international scene. Malta's manufacturing industry has grown considerably in recent years and is also an important source of income, especially in the fields of electronics and textiles.

LABOUR FORCE

Total: 127,200. By occupation: 37 percent are employed by government, 26 percent in services, 22 percent in manufacturing, 9 percent in training programs, 4 percent in construction, and 2 percent in agriculture.

BUSINESS CULTURE

Malta combines history and romance, lying as it does halfway between Europe and Africa and therefore subject to cultural ambivalence. Maltese generally have a relaxed attitude toward business protocol, but the longer-established firms tend to retain some of the reserve British culture is noted for. The only thing foreign businesspeople can expect is variety; there is no one sure method for dealing with Maltese businesses. Punctuality is always appreciated.

BUSINESS ATTIRE

Light clothing is adequate in summer as the weather can become quite warm. Layering is appropriate in winter as it can get somewhat cool. Dress conservatively for business meetings and official occasionions.