International credit agency Creditreform Rating has reaffirmed our country’s A + rating, confirming that the outlook for this rating is stable.

The report by the German experts claims that our country has a track record of “vivid economic growth well above that of the euro area over recent years”. They said that the resilience of our economy reflects the diversification of its economic sectors. In fact, in the report they noted that despite the pandemic there were a number of sectors in the digital field that improved operations and revenue. The report noted “the sophistication of Malta’s economic model”.

German experts note how the economic performance of our country during the pandemic was better than in the rest of the European Union, especially in the first quarter. This was due to the Government’s caution in imposing restrictive measures on the economy. In addition, as a result of Government aid, it is predicted that in 2021 there will be a strong economic recovery. They add that “thanks to wage subsidies to safeguard employment, the fallout from the corona crisis on the labour market has been limited”.

Experts believe that the European funding package has the potential to offset the impact that the negative performance may have on the surrounding economies and trigger a stronger-than-expected recovery.

Another important element behind the choice to affirm the rating of our country is the “generally high quality of the institutional framework.” Additionally, in the report it was noted that “government seems committed to deliver on continued effort required to satisfyingly deal with rule of law and anti-money laundering”. The reforms introduced by this administration have been praised and welcomed. Foreign experts also seem convinced of the Government’s work even on Moneyval’s recommendations.

German experts are also convinced that fiscal indicators will improve. They noted that despite the increase in the deficit, the Government’s financial situation is “relatively benign in the euro area context”. So much so that, according to the Creditreform report, the Government’s sound financial situation “Should lay the foundation for a timely economic recovery”.

Foreign experts believe the national debt burden will not exceed 60% of national wealth despite the pandemic and is expected to decline again thereafter. They also argued that the interest burden is declining, and Government debt will become more affordable.

The Government notes that the positive Creditreform report is the second positive certificate given to the Maltese Government in a week after that of the European Commission which had words of praise for the Government budget and the economic measures announced in it to continue to support families and businesses in our country.