At the end of an extensive analysis of the Maltese economy by a group of experts of the International Monetary Fund (IMF), the Executive Board of this main institution had words of praise for the work of the administration of our country. In fact, they concluded that “the authorities’ swift and bold policy response helped mitigate the impact, preventing large-scale layoffs, bankruptcies, and credit disintermediation.”
The IMF notes that, thanks to the success of the vaccine program, economic sentiment has recovered, with the result that the Maltese economy is expected to grow by 5.75% this year and by 6% next year. This is the highest economic forecast given to our country, and it is one and a half times more than the government has in its hands.
In the same vein, international experts urge the government to rebuild the country’s fiscal resources as soon as the pandemic passes, and balance with the need for continued investment in infrastructure. IMF directors also welcomed the government’s plans to reduce carbon emissions, praising labor reforms as well as the progress made in stepping up work against carbon emissions. money laundering and financial regulation.
IMF experts say that “Malta entered the pandemic crisis on a relatively firm economic footing”, and that “Malta’s policy direction has been broadly in line with past (IMF) staff recommendations”. In fact, they praise the reduction that had been made in the burden of the national debt and the savings made by the government.
According to IMF calculations, government aid has reached 13.4% of national wealth over two years. Without this support, according to the IMF, there would have been a sharp rise in unemployment instead of the decline that actually took place. IMF experts say that “fiscal policy remains appropriately expansionary” and that “fiscal support should continue and be only gradually reduced”. According to the IMF’s technical analysis, this is possible because Malta’s debt is sustainable.
International experts also refer to the various strategies that the government is launching for our country to carry out the digital and environmental core. They said that Malta should remain “among Europe’s digital frontrunners”, while welcoming the plan for our country to reduce emissions. As the government does, IMF experts have argued that the digitalisation and decarbonisation of our country is the best guarantee of greater and more sustainable growth.
Following the confirmation of our country’s high rating by four credit bureaus, the IMF report is another certificate of the effectiveness of the government’s strategy to weather the pandemic and build new prosperity. In the 2022 budget, a large number of other measures will be introduced to achieve this goal.
