At the end of an extensive analysis of the Maltese economy, a group of experts from the International Monetary Fund (IMF) revised upwards their forecasts for our country. In their April forecast, they said Malta’s national wealth would grow by 4.7%. But now this has been revised to almost 5.8%. This upward revision of more than one percentage point is even greater than that just made by European Commission experts.
For next year, IMF experts are predicting an economic growth rate of 6%. Even in this case, there was an upward revision in the growth rate for our country, this time by almost half a percentage point.
The IMF report is clear on the reasons behind the rapid recovery of our country after the strong impact of the pandemic. In fact, it is said that, “the authorities’ swift and bold policy response helped mitigate the impact, preventing large-scale layoffs, bankruptcies, and credit disintermediation.” These support measures have been the fruit of government wisdom in recent years, so much so that IMF experts urge the government to rebuild the country’s fiscal resources as soon as the pandemic passes.
The IMF praised the vaccination program and noted how confidence among families and businesses has already reached pre-pandemic levels. Noting a number of factors that could affect the recovery rate, the IMF has shown that there is a very strong domestic demand against them.
International experts have urged the government to start tapering some support measures, turning others into programs that help the sustainable growth of the Maltese economy.
The report also urges the government not to hesitate to help businesses where needed. Although Opposition spokesmen say the government does not have a fiscal and economic plan, IMF experts say they agree with the government’s strategy, especially in the area of infrastructure.
The IMF report notes how, “over the past two years, the authorities have made good progress in strengthening the AML / CFT framework, including by addressing technical deficiencies”. They urged the government to implement the action plan agreed with the FATF. This while maintaining that our country should continue to strengthen governance.
Finally, international experts welcomed 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, they argued that the digitalization and decarbonization of our country are the best guarantee of greater and more sustainable growth.
The government welcomes this latest positive certificate, while confirming the determination to build a new prosperity for our country as a result of continuous progressive reforms.
