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.
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