Republic of Malta

Repubblika ta' Malta Republic of Malta


Anthem L-Innu Malti The Maltese Hymn
Location of Malta

Capital	Valletta

Government	Republic and parliamentary democracy
President
- From 2009	George Abela
Prime Minister
- From 2004	Lawrence Gonzi

Legislature	House of Representatives

History
- September 21, 1964	Independence from the United Kingdom
- December 13, 1974	Republic

Commonwealth accession	September 21, 1964

EU accession	May 1, 2004

Area	316 km²

Population
- 2010	412,966
Density	1,306.8/km²

GDP	2010 (PPP)
- Total	US$ 9.7 billion
- Per capita	US$ 23,662

Currency	Euro

NUTS Region	MT0

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The Republic of Malta is a parliamentary democracy in located in Mediterranean, between Europe, and Africa.

Background

Great Britain formally acquired possession of Malta in 1814. The island staunchly supported the UK through both world wars and remained in the Commonwealth when it became independent in 1964. A decade later Malta became a republic. Since about the mid-1980s, the island has transformed itself into a freight transshipment point, a financial center, and a tourist destination. Malta became an EU member in May 2004 and began using the euro as currency in 2008.^[1]

Economy

Malta produces only about 20% of its food needs, has limited fresh water supplies, and has few domestic energy sources. Malta's geographic position between the EU and Africa makes it a target for illegal immigration, which has strained Malta's political and economic resources. Malta adopted the euro on 1 January 2008. Malta's financial services industry has grown in recent years and in 2008-09 it escaped significant damage from the international financial crisis, largely because the sector is centered on the indigenous real estate market and is not highly leveraged. Locally, the restricted damage from the financial crisis has been attributed to the stability of the Maltese banking system and to its prudent risk-management practices. The global economic downturn and high electricity and water prices hurt Malta's real economy, which is dependent on foreign trade, manufacturing - especially electronics and pharmaceuticals - and tourism, but growth bounced back as the global economy recovered in 2010. Following a 1.2% contraction in 2009, GDP grew 2% in 2010.^[2]