Standard and Poor’s Credit Rating agency has avowed Malta’s A-/A-2’ ratings with a positive outlook.
Malta’s robust and steady growth performance, the recurring current account surpluses driven by Malta’s large services exports, and the improving general government budgetary situation and fiscal management reflects the positive rating.
As per the reports the domestic banks are possessing a low loan-to-deposit ratio with high liquidity, making the financial services industry more stable and reliable.
Improvement in the government’s financial position, reduced general government debt relative to GDP, and several structural reforms undertaken to increase female participation in the labour market and reduce the country’s energy bill have not gone unnoticed rather acknowledged by Standard and Poor’s.
Some of the important contributors to growth includes significant investments in energy and logistics along with growth in other sectors like tourism and e-gaming will continue to fuel the progress in the coming years.
As per Standard and Poor’s, the growth in 2019 is expected to be moderate but will supersede that of peers at similar income levels and development stages.
The swift growth of new economic sectors and increase in government revenues have allowed the consolidation of public finances.
As per the Standard and Poor’s projections, the debt-to-GDP ratio will decline from a projected 47 per cent in 2018 to under 40 per cent in 2021 with recurrent fiscal surpluses.
Efforts to reform public-sector enterprises, reduce skill disparities, and improve the long-term sustainability of public finances will be implemented gradually, in conjunction with increased public investment to bridge infrastructure gaps.
Standard and Poor’s also acknowledges that macroeconomic policymaking will remain geared towards further fiscal consolidation.