According to a recent IMF report issued by its executive board, the Maltese economy is one of the fastest-growing out of all 28 Member States. The board noted that this decision was made on the back of sound macroeconomic policies, robust job creation, improved public finances, strong economic performance, and a low unemployment rate. The report pointed out that due to the country’s small size, further attention should be given to continuing to enhance the economy’s resilience to shocks and competitiveness.
Some points for improvement including increasing the efficiency of tax collection and improving the financial health of State-owned enterprises as containing the spending on wages, goods, and services would reduce fiscal risks.
Malta’s banking system received praise due to it being well capitalised and liquid with profitability well above levels seen in other European counterparts but the IMF also pointed out weaknesses with respect to protracted low interest rates, legacy corporate non-performing loans, and weak credit growth.
IN 2014-2015 the country experienced an average growth of almost 8% and output is estimated to have expanded a further 4.1% in 2016 supported by a strong domestic demand.
With growth set to moderate to approximately 3.4% in 2017 the future is still looking positive.
Read the article in the Times of Malta.