A press statement published by the Government of Malta states that after Moody’s agency last July raised the rating of our country for the first time in 11 years, the credit opinion issued on 11 February further confirmed the rating of A2 as a stable country. This means that Moody’s is the third credit rating agency which confirmed the country’s rating since the beginning of this year.
Moody’s experts say that Malta has a, “track record of strong economic growth in recent years and elevated per capita income levels”. In fact, they predict that in 2019 the Maltese economy grew by 5.1% according to which, ” would represent the highest rate of growth in the EU”. In the coming years, international experts predict that the Maltese economy will continue to grow above the European average. This is because they believe that the labour market will remain strong with “unemployment at record lows and employment continuing to grow”.
Moody’s credit opinion predicts that ” strong growth and government surpluses set to continue driving fall in government debt”. Contrary to what some predict, international experts are expecting that the government surplus is to remain close to 1% of national wealth in 2020, and thus the national debt down to almost 40%. It is good to note that in the first quarter of 2013 the burden of national debt exceeded 70%.
On the appointment of Dr Robert Abela as Prime Minister, Moody’s report says that “we expect this to lead to a broad continuity of economic and fiscal policy, while Abela has also reconfirmed the government’s commitment to tackle Malta’s institutional challenges “.
The international agency says that institutions and governance are “in line with peers”, reflecting “a robust policy framework”. In addition, Moody’s say they believe the government will be addressing the institutional challenges and further strengthen the authorities’ operations. Among others, the report mentions increases in the budget granted to financial regulators and FIAU, welcoming the establishment of the Financial Organised Crime Agency.
After an upgrade of our country a few months ago, Moody’s confirmed the high rating for our country again. Thus, within one month, the country has received three positive international certificates from independent agencies. The government is committed to work for this trust to result in foreign investment and thus greater prosperity for families and our businesses.