The international credit agency, S&P Global Ratings, confirmed the A-rating for our country, with a stable outlook.

According to foreign experts, although the pandemic will have an economic impact, it will not lead to “significant and structural damage” in Malta. In fact, the credit agency says that there are several factors that will lead to “a robust recovery in 2021-2022 “.

Key among them is “the government’s comprehensive policy response” which will preserve the productive capacity of our country’s economy. In the words of the S&P Global Ratings report, the Government’s measures “safeguard incomes and prevent business closures”. Experts say that “without this comprehensive fiscal response, we think the Maltese GDP would have fallen considerably lower, unemployment would have surged faster, and solvent businesses would be forced to liquidate, eroding the economy’s productive base, perhaps permanently.”

Thanks to the economic regeneration plan, international experts are predicting that in 2021 and 2022 economic growth will be 5.5%. Experts note that the Maltese Government can afford to finance the unprecedented measures it has introduced because it has greatly reduced debt and accumulated heavy savings.

So much so that the S&P Global Ratings report says that, given these Government assets, the debt burden will be 43% of national wealth in 2023, which is well below the interest rates. more than 60% in past years. Experts also stress that the Maltese Government has managed to acquire strong resources from the European Union with an allocation of € 2.25 billion.

This report praised the improvements in the operation and budgets of the FIAU and the MFSA. It also says that the reform in the leadership of the Police has hit the attention of foreign experts who said that the way the Commissioner is appointed is much more transparent.

The Government welcomes this positive certificate for the way it has responded to the effects of the pandemic. Work will continue in the coming weeks to give another strong boost to families and businesses with a more sustainable economy through the forthcoming Budget.