The international agency DBRS Morningstar confirmed the rating of Malta as A (high) stable. Thus, the country continued to enjoy the best rating ever given to it by this agency.
The agency’s experts claimed that “Malta’s high economic growth rates and fiscal surpluses prior to the Coronavirus Disease (COVID-19) shock have supported its private and public sector’s capacity to soften the pandemic setback and mitigate the risks to the ratings ”.
The DBRS notes that in the first nine months of 2021 Malta’s economy has already grown by almost 8% thanks to a sustained recovery in consumption and investment. They also note that the unemployment rate is now even lower than before the pandemic. This is due to three factors — a gradual recovery in tourism, sustained tax relief, and a high vaccination rate.
The latter factor is particularly important in view of the Omicron variant, so much so that according to the DBRS report, while abroad it could have a significant economic impact. Experts say: “Malta’s high vaccination rate and improved adaptability to the pandemic environment should mitigate the risks.” This indicates the importance of continuing to be vaccinated even with the booster dose.
The DBRS report also indicates that in their extensive analysis they are not seeing that economic impacts have occurred since the FATF decision on the country. So much so that the financial and gaming sectors are still growing rapidly.
When it comes to public finances, the DBRS’s analysis is the complete opposite of the Opposition’s. In fact, these international experts note how the deficit is due to support measures, which were crucial for our country’s economy. While the Opposition fears that public finances are out of control, according to the DBRS the national debt is sustainable.
Not only that, but they believe that the Government’s forecast is prudent enough that there are even funds for our country to face the challenge of international fuel prices. The track record of this administration means that DBRS experts have no doubt that the state of the government’s finances will improve rapidly.
While pointing out that Malta has a stable policy, the report commends the substantial progress made in improving the governance and health of the institutions. In fact, experts note how the Prime Minister has better distributed the powers of the state, while carrying out major reforms in the police, judiciary and the Attorney General’s Office.
