Fitch Ratings experts concluded its findings in a report that in the Maltese economy “the banking sector remains sound”.
Malta has received an A+ rating by Fitch Ratings, this implies that the credit rating agency believes Malta’s Long-Term Foreign-Currency Issuer Default Rating as having a stable outlook.
Malta’s economy continues to exceed performance and the agency emphasizes Malta’s “very favourable” debt dynamics where public debt has declined to 47.3% of GDP and expected to decline further as time passes.
The recent report also shows a remarkable decline in unemployment in May 2018, reaching 3.9%, which is among the lowest rates in the Eurozone.
The Government of Malta also added that the Fitch Ratings report accentuates government’s 3.9% surplus, and apart from this, in the upcoming year, the government will see further progress through surplus.
According to the latest reports, the Government also added that Fitch experts believe 5.6% real GDP growth for the coming year for Malta.
The Maltese economy, according to Fitch analysts, can be affected by Brexit since around 24% of tourists came from the UK which was a decrease from the previous 4 years. That inflation is expected to rise by 2% in the coming year. Apart from this, due to a new EU directive that was issued on eVAT revenues, analysts are expecting tax revenue to fall as a share of the GDP. The country’s revenue was shown to be 2.2% of GDP in 2017, however, it is anticipated to fall to 0.9% in the coming year.
Moreover, Fitch states that “strong private and public consumption” is one of the main reasons for economic growth and what helps private consumption most are “low interest rates and strong employment and wages”.
