Building a new prosperity

Yet another upward revision to Malta’s economic prospects.

At the end of weeks of intensive meetings in Malta, what is known as an Article IV mission, experts from the International Monetary Fund (IMF) issued a concluding statement wherein they commended the economic performance of our country.

The most clear sign of this was the fact that, despite the steadily worsening global economic situation, the IMF experts decided to revise upwards their economic forecasts for Malta. Whereas before the Article IV mission, they were predicting that this year Malta’s GDP would increase by 3.8%, now they raised their forecast to 4%.

In its concluding statement, the IMF notes that “Malta has marked an impressive recovery from the pandemic and demonstrated substantial resilience to shocks”. It also noted that growth will be “among the highest in Europe”. Among the factors that led to this, the IMF mentions the fiscal support being provided by the Government. This is also helping to keep the unemployment rate in our country at historic minimum levels, amid a very tight labour market.

While noting the Government’s plan to reduce the deficit, the Fund’s experts contend that economic support related to electricity and fuel should be progressively relaxed. This mainly to incentivise less energy consumption and facilitate the economy’s greening process. Yet, the report notes the strong progress in this area, particularly as a result of Malta’s Recovery and Resilience Plan. As regards fiscal developments, the IMF welcomed measures being taken by the Government to prioritise public expenditure as well as reduce tax evasion.

The report also mentions the fact that the 2024 Budget contains several social support measures. It also commends the actions of the Maltese authorities to bolster financial stability as well as progress in improving governance and the fight against money laundering. The IMF stresses the need to continue improving productivity, as well as accelerating the digital and green transformations of the Maltese economy.

This report, following similar positive assessments by the European Commission and Moody’s, is yet another certificate that our country is in the right direction, and is steadily building a new prosperity.  

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