The international credit agency Creditreform Rating has reaffirmed our country’s A + rating, confirming that the outlook for this rating is stable.
The report of the German experts claims that Malta has a track record of “vivid economic growth well above that of the euro area over recent years”. They said the resilience of our economy reflects the diversification of economic sectors. In fact, the report noted that despite the pandemic, there were a number of sectors in the digital field that improved operations and revenues. The report adds notes on “the sophistication of Malta’s economic model”.
German experts note how the economic performance of Malta during the pandemic was better than in the rest of the European Union, especially in the first quarter. This was due to the caution in imposing restrictive measures on the economy. In addition, with the help of the Government, it is predicted that in 2021 there will be a strong economic recovery. They add how “thanks to wage subsidies to safeguard employment, the fallout from the corona crisis on the labor market has been limited”.
Experts believe that the European funding package has the potential to offset the potential negative impact on the surrounding economies and trigger a stronger-than-expected recovery.
Another important element behind the choice to affirm the rating of our country is “generally high quality of the institutional framework”. This while the report noted that “government seems committed to deliver on continued effort required to satisfactorily deal with rule of law and anti money laundering”. The reforms introduced by this administration have been praised and welcomed. Foreign experts also seem convinced of the Government’s work even on Moneyval’s recommendations.
German experts are also convinced that fiscal indicators will improve. They noted that despite the increase in the deficit, the Government’s financial situation is “relatively benign in the euro area context”. So much so that, according to the Creditreform report, the good financial situation of the Government “should lay the foundation for a timely economic recovery”.
Foreign experts believe that the burden of national debt will not exceed 60% of national wealth despite the pandemic, and is expected to decline again later. They also argued that the interest burden is declining and Government debt will become more affordable.
The Government notes that the positive Creditreform report is the second positive certificate given to the Maltese Government in a week after that of the European Commission which had words of praise for the Government budget and economic measures. of benefits announced in it to continue to support families and businesses in the country.
