The international agency Fitch confirmed the rating of Malta as ‘A +’ with stable prospects. This is despite the negative economic impact of the pandemic on the world which is leading the same agency to revise down the ranking of several countries.
Fitch Ratings experts gave confidence to Malta because they claimed that, “GDP growth will recover and that debt will resume a gradual downward path”. The international agency has improved its forecast for Malta’s growth next year, from 3.9% to 6%, which is even more than the Maltese Government is forecasting.
An important element is that, “Malta has been a front runner in terms of vaccination distribution”, so much so that it was the first European country to achieve “herd immunity”. This while Fitch noted that several sectors have shown growth despite the pandemic, among others services such as online gaming, the financial sector and the IT sector.
The report of foreign experts concludes that, “Malta’s labor market remained remarkably resilient amid the pandemic”. In fact, the unemployment rate is the second lowest in the euro area and employment growth has been recorded.
While praising the economic performance, the Fitch agency says that the Maltese Government has made progress in the global fight against money laundering and terrorist financing. Meanwhile, “Malta’s World Governance Indicators (WGI) remain above the ‘A’-rated median”. Fitch Ratings experts claim that the country has, “Strong institutional capacity, effective rule of law and a low level of corruption”.
While the Opposition claims that the government is wasting money and the fiscal situation is unsustainable, Fitch experts predict that the deficit this year will be lower than the government is predicting and that the The national debt burden will remain below 65% of national wealth, ie, “5% below the 2011 peak of 69.3% of GDP, illustrating Malta’s strong fiscal track record”.
This positive certificate to Malta from the international agency Fitch Ratings is another confirmation of the wisdom with which the economy and public finances were led in this challenging time. Along with the improvement in the field of governance, these results will provide a solid foundation for the strong growth of the country in the coming years.
