The latest credit rating report by Standard & Poor's
expects the Maltese economy to continue being one of the
faster-growing economies in the Eurozone.
The credit rating agency re-affirmed Malta's outlook as
positive while reiterating its overall rating at BBB+/A-2.
Standard & Poor's considers that the main drivers of
growth are the energy, healthcare and education sectors, in
combination with the expansion capacity in the tourism and
Economic growth is also expected to be supported by private
consumption which is in turn stimulated by an increase in
disposable income coupled with significant structural growth in
employment, particularly amongst females. The credit rating agency
expects further improvements in the labour force participation
rate. It also expects the current economic growth momentum to
improve the sustainability of the social security system.
On public finances, Standard & Poor's acknowledge the
reductions in the deficit and debt ratios and expect both ratios to
continue declining in the coming years with the debt ratio expected
to fall below 60 per cent by 2019.
The report makes particular reference to Brexit and overall
states that, "We expect the impact on growth of the UK's
exit from the EU (Brexit) to be relatively contained..."
Further, on external trade, Standard & Poor's are
projecting the external current account to continue recording a
surplus in the coming years, averaging around 5.3 per cent of GDP
in the 2016 to 2019 forecast period.
Minister for Finance Prof. Edward Scicluna said that, "I am
pleased to note Standard & Poor's comment on Malta's
overall political and institutional framework, which it describes
as being broadly supportive of creditworthiness, demonstrated by
structural reforms that generated employment growth and elevated
the potential growth of the economy."
(Source: Ministry for Finance)
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