Credit-rating agencies continue to enhance Malta’s proposal as an attractive investment jurisdiction. The Malta Financial Authority Services (MFSA) in their monthly newsletter reported on the upgraded credit rating from credit-rating agency Fitch. Fitch upgraded the credit rating for Malta to an A+, considering the rating to be stable.
Along with this upgrade Fitch commented on the countries improved financial position, stating that it expects gross general government debt to decline to 50% of GDP by 2019. Further it is expected that GDP growth in Malta will remain strong with primary surpluses being registered. According to Fitch Malta’s GDP is expected to grow at a rate of 4.3% for this year, 3.7% for 2018 and 3.5% in 2019. The annual median growth rate of GDP is currently at 2.9% placing Malta well above the average for GDP growth, according to these forecasts.
Furthermore, Fitch expects investment to pick up in 2019 due to new EU funds becoming available to Malta and the launch of large transport, health and education projects.
DBRS, another credit rating agency, affirmed Malta’s credit rating at A while upgrading the trend on the ratings to a positive. DBRS expects the improvement in Malta’s fiscal position over the past three years to be sustained and expects a further reduction in the public debt ratio.