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Malta’s economic prospects rated as ‘positive’ by Fitch

by Emma, on Jul 29, 2019 10:36:39 AM

The rating agency, Fitch, updated Malta’s status from ‘stable’ to ‘positive’, re-affirming the country’s A+ rating. The government of Malta shortly after released a statement declaring that this was the best rank Malta has ever been awarded.

This review has been driven by the steady growth in GDP which is forecasted, while public finances show a surplus and debt-to GDP ratio lifting.

Main findings:

  • The forecasted GDP growth is 5.5% in 2019 and 4.8% in 2020
  • The local real estate shows no signs of further inflation
  • Fitch states that Malta’s institutional powers are “stronger than the majority of A-rated peers”
  • Local banks are writing off bad loans coming down from 7.3% of their books in 2015 to a current 3.3%
  • Resources which have been developed and implemented by the FIAU and MFSA “seem to gave resulted in a surge in administrative penalties being enforced”
  • The debt-to-GDP ratio has significantly decreased from 2011’s 70%. It is currently positioned at 46%, expecting to lower to 40.3% by 2020
  • Government surplus is predicted to maintain at 1% through 2021. The income gained from the Citizenship by Investment scheme will continue to diminish, settling at 0.5% by 2021
Topics:GDPInternationalNewspositivePress ReleasesratingsrelocationHNWCitizenship & Residency