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Trends in Malta’s current account and their underlying causes

Author

Listed:
  • Aaron G Grech
  • Noel Rapa

    (Central Bank of Malta)

Abstract

Malta’s current account has improved substantially since 2009, by about four times the change seen in the euro area. The note establishes that Malta’s current account is stationary, a necessary condition for avoiding sustainability problems in external accounts. This reflects a recovery in the national saving rate. Conversely investment has declined.

Suggested Citation

  • Aaron G Grech & Noel Rapa, "undated". "Trends in Malta’s current account and their underlying causes," CBM Policy Papers PP/03/2016, Central Bank of Malta.
    • Handle: RePEc:mlt:ppaper:0316
    as

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    File URL: https://www.centralbankmalta.org/file.aspx?f=51497
    File Function: First version, 2016
    Download Restriction: no
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    References listed on IDEAS

    as
    1. Sebastian Edwards, 2002. "Does the Current Account Matter?," NBER Chapters, in: Preventing Currency Crises in Emerging Markets, pages 21-76, National Bureau of Economic Research, Inc.
    2. Jane Haltmaier, 2014. "Cyclically Adjusted Current Account Balances," International Finance Discussion Papers 1126, Board of Governors of the Federal Reserve System (U.S.).
    3. William Gatt, "undated". "The determinants of household saving behaviour in Malta," CBM Working Papers WP/03/2014, Central Bank of Malta.
    4. Trehan, Bharat & Walsh, Carl E, 1991. "Testing Intertemporal Budget Constraints: Theory and Applications to U.S. Federal Budget and Current Account Deficits," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 23(2), pages 206-223, May.
    5. Grech, Aaron George & Grech, Owen & Micallef, Brian & Rapa, Noel & Gatt, William, 2013. "A Structural Macro-Econometric Model of the Maltese Economy," MPRA Paper 46128, University Library of Munich, Germany.
    6. Aaron G. Grech (ed.), 2015. "The evolution of the Maltese Economy since Independence," CBM Ebooks, Central Bank of Malta, edition 1, number 02.
    7. Aaron G Grech, "undated". "The evolution of the Maltese economy since independence," CBM Working Papers WP/05/2015, Central Bank of Malta.
    8. Tkačevs, Olegs & Christodoulopoulou, Styliani, 2014. "Measuring the effectiveness of cost and price competitiveness in external rebalancing of euro area countries: What do alternative HCIs tell us?," Working Paper Series 1736, European Central Bank.
    9. Matteo Salto & Alessandro Turrini, 2010. "427 - Comparing alternative methodologies for real exchange rate assessment - Matteo Salto and Aless," European Economy - Economic Papers 2008 - 2015 427, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    10. Grech, Aaron George, 2000. "The private and public savings gaps in Malta and their impact on the current account," MPRA Paper 33208, University Library of Munich, Germany.
    11. Ioanna C. Bardakas, 2016. "Structural and cyclical factors of Greece’s current account balances: a note," Working Papers 206, Bank of Greece.
    12. Quintos, Carmela E, 1995. "Sustainability of the Deficit Process with Structural Shifts," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(4), pages 409-417, October.
    13. Owen Grech & Noel Rapa, 2016. "STREAM: A structural macro-econometric model of the Maltese economy," CBM Working Papers WP/01/2016, Central Bank of Malta.
    14. Iris Claus, 2003. "Changes in New Zealand's Production Structure: An Input Output Analysis," Treasury Working Paper Series 03/01, New Zealand Treasury.
    15. Silvia Fabiani & Stefano Federico & Alberto Felettigh, 2016. "Adjusting the external adjustment: cyclical factors and the Italian current account," Questioni di Economia e Finanza (Occasional Papers) 346, Bank of Italy, Economic Research and International Relations Area.
    16. Sebastian Edwards & Jeffrey A. Frankel, 2002. "Preventing Currency Crises in Emerging Markets," NBER Books, National Bureau of Economic Research, Inc, number edwa02-2.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Rita Schembri, "undated". "Ten years in Economic and Monetary Union: Malta’s experience," CBM Policy Papers PP/02/2018, Central Bank of Malta.
    2. Lara Scicluna & Sharon Seychell & Jonathan Spiteri & Simon Grima, 2019. "The Maltese Financial Services Industry’s Perception on the Regulators: An Empirical Analysis," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 16-51.
    3. Brian Micallef, "undated". "The process of economic convergence in Malta and in the European Union," CBM Policy Papers PP/02/2017, Central Bank of Malta.

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    More about this item

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements

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