Following Standard and Poor’s positive credit rating back in April 2017, rating agency Fitch has recently upgraded Malta’s long-term rating to ‘A+’ with a stable outlook.
The independent credit rating institution defined one of the main contributors to this upgrade as the fast declining gross general government debt which is expected to decrease to 50% of GDP in 2019 supported by strong nominal GDP growth and recurrent primary surpluses.
Fitch expects Malta to continue achieving a fiscal surplus in the coming years. It will reflect the Government’s efforts to improve tax collection and tax revenue, reduce unnecessary expenditure on social benefits and ease pension pressures and support higher robust economic growth.
Furthermore, Fitch foresees the Maltese economy to continue growing at a faster pace than that of similarly rated countries, fuelled by the solid performance of Maltese exports (notably in the services sector), a dynamic labour market, and investment.
The credit rating report acknowledged Malta’s improvement in the ‘Ease of Doing Business’ report, where Malta’s ranking improved by 7 places in just one year. Fitch also noted that Malta’s credit rating upgrade also reflects its strong governance.
Finance Minister, Edward Scicluna, welcomed news of the upgrade, saying “Government’s vision for Malta is turning into reality, in that Malta is becoming a solid top performer in economic growth, employment growth, and sound public finances. All this is being confirmed by the rating agencies.”
Once again Malta enjoys both a positive rating and one of the strongest macroeconomic expansions in the Eurozone. Once more the Island is determined to maintain and strengthen those factors which will enable achieve higher rating.
Written by Marta Bellamoli, Marketing Co-ordinator