Malta managed to retain the long-term A-rating of Standard & Poor's. At the end of the first quarter of 2017, the rating agency acknowledges the robust growth recorded by the Maltese economy, stating that Malta continues to enjoy one of the strongest macroeconomic expansions in the Eurozone.
It notes that the significant investment projects in energy, healthcare, education, and hospitality in the last three years were important drivers of growth. These sectors are also expanding the base for further future export growth. Standard and Poor’s further notes that growth was also supported by the increase in the labour force participation rate especially amongst females attributing such increases to Government’s labour market policies including the making work pay initiatives and the provision of free childcare centres.
With regards to Brexit, the report states that Malta is generally well-placed to withstand Brexit shocks, as it has a diversified export base and a flexible economy. The rating agency says Malta has made considerable progress when it comes to fiscal consolidation. It also expects the debt-to-GDP ratio to continue on a declining trend, falling to 53.8% by 2020 while net debt is expected to fall to 47%.
The Minister for Finance Prof. Edward Scicluna welcomes the latest credit rating report by Standard and Poor’s affirming Malta’s rating at 'A-/A-2' with a stable outlook. “This report comes on the morrow of the NSO statistical report on Malta’s public finances whereby Malta achieved a surplus in 2016 after 35 consecutive years of deficits. The Government deserves being proud of these achievements,” Scicluna said.
Press release by the Ministry of Finance.