Best credit rating ever

Malta has grown by almost six times the average of the world’s richest economic zone.

For the eleventh time in a row, Morningstar DBRS confirmed Malta’s rating as A (high) stable. This is the best rating ever given by this agency to Malta.

The agency’s experts argued that Malta’s economic recovery after the pandemic was strong and better than in other European countries. In fact, they noticed that “real GDP growth increased by 18.0% between 2019 and 2023, compared to an increase of just 3.3% for the Euro area”. This means that, at a time of unprecedented uncertainty which included a pandemic, wars around us, and shocks of energy, fuel, and food prices, Malta has grown by almost six times the average of the world’s richest economic zone.

The international experts note how the strong economic growth came from professional services and digital sectors such as information and communication. Furthermore, Morningstar DBRS stresses the importance of government fiscal support, that has greatly helped the purchasing power of families.

Despite the Government’s decision to keep energy and fuel prices stable, experts believe the country’s deficit will continue to be reduced. Moreover, they comment that the national debt burden compares favourably with that in other European countries. According to Morningstar DBRS the debt level “continues to provide the government with valuable space to support the economy if under stress”. This means that the fiscal situation cannot be seen as unsustainable, as argued by the Opposition spokespersons.

The report also notes the financial soundness of Malta’s banks as well as the strong improvement in the country’s international balance of payments.

Finally, the experts of this international agency say that they believe that Prime Minister Robert Abela guarantees continuity when it comes to improving the country’s institutions and governance.   In fact, they note that Malta is enjoying a continuity of stable policies.

Photo: Efrem Efre

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