Moody’s had raised Malta’s rating to A2 ‘stable’ last July after 11 years.
Confirming the rating, the agency says the island has a “a track record of strong economic growth in recent years and elevated per capita income levels”. Its experts estimate that Malta’s economy grew 5.1 per cent last year, in which case it “would represent the highest rate of growth in the EU”.
They also forecast that this above-average rate of growth should persist in the coming years mainly because the labour market would remain strong with unemployment at records lows and employment continuing to grow.
Moody’s also notes that strong growth and government surpluses are set to continue driving a fall in government debt. Government surplus should remain close to 1 per cent of the GDP this year, national debt dropping to almost 40 per cent.
The credit rating agency comments that Robert Abela’s appointment as Prime Minister is likely to lead to “a broad continuity of economic and fiscal policy”, noting that he again confirmed the government’s commitment to address the island’s institutional challenges.
In its experts’ views, Malta’s institutions and governance are “in line with peers” and reflect “a robust policy framework”.