Ratings agency Moody’s has projected Malta’s economy to grow by 4.2 per cent this year and maintained the country’s A2 negative rating.

In a report issued on Tuesday, the agency praised Malta’s economy for the growth and diversification of its economy, but warned that the significant increase in the Government debt burden and broader economic uncertainty was driving a negative outlook.

The report was welcomed by Prime Minister Robert Abela, who also pointed to recent generally positive reviews by Fitch and the EU’s Spring Forecast.

Moody’s report has predicted Malta’s economy to grow by 4.2 per cent of GDP in 2022 while warning that domestic consumption and investment will be important drivers of growth.

The agency also warned that economic growth would depend, amongst other factors, on the recovery of Malta’s tourism sector and the number of visitors to the islands this year.

It also referenced Russia’s invasion of Ukraine, stating that Malta does not depend very heavily on the country for its energy supplies, and predicted that inflation in the country will remain amongst the lowest in the eurozone.

Looking to the future, Moody’s stated it would be paying attention to Malta’s control of public debt, recovery of its tourism sector, and the country’s status on the Financial Action Task Force (FATF)’s grey list, when deciding future ratings.

Last week, Fitch affirmed Malta’s A+ rating and gave it a Stable Rating.

The ratings agency stated emphasised Malta’s high per-capital income levels, large external creditor position, and pre-pandemic record of strong growth and sizeable debt reduction.

However, it also identified a number of weaknesses, including its large banking sector, the small size of its economy, and a recent decline in public finances related to large fiscal deficits.

Moneybase promises 48-hour turnaround for opening business accounts

February 19, 2024
by Rebecca Anastasi

Calamatta Cuschieri’s Moneybase Business aims to streamline financial processes, and offer a personalised easily accessible, automated service driven by client-needs

European Commission revises Malta’s economic growth projection upwards to 4.6%

February 15, 2024
by Anthea Cachia

Projections were published on Tuesday as part of the European Commission’s 2024 winter economic forecast

Going beyond the basics: How BOV is investing in the future well-being of its people

February 9, 2024
by BN Writer

One year post its Voluntary Occupational Pension Scheme launch, BOV remains committed to being an employer of choice