In August, respected international credit rating institution Fitch has increased Malta’s credit rating from A to A+.
The independent credit rating institution defines one of the main contributors to this upgrade as the ‘fast declining gross general government debt’, which is expected to ‘decrease to 50% of GDP in 2019.
The Maltese economy is seen to continue to grow at a quicker pace compared to countries with similar credited rates. This forecast is powered by the successful performance of Maltese exports, such as investments, the services sector, and a versatile labour market.
Investments are expected to grow in 2019, boosted by the increased absorption of new European Union funds and the launching of large projects in health, transport and education.
Fitch said the banking sector might remain stable with improved profitability and capitalization, non-performing loans on a declining trend, and conservative lending.
Fitch also predicts Malta’s position to remain strong. The current account surplus is expected to increase to over 7 per cent in the 2017-2019 period.
Minister for Finance Edward Scicluna welcomed the Fitch report saying that the ‘Government’s vision for Malta is turning into reality. Malta is becoming a solid top performer in economic growth, employment growth, and sound public finances. The rating agencies are confirming all this.
Last year, another credit rating institution, Standard and Poor’s, also improved Malta’s credit rating.