German credit ratings agency Creditreform has confirmed Malta’s rating at A+ level, whilst also confirming economic prospects as stable. German economists have stated that despite the impact of the pandemic, Maltese economic trends fared better than those of the rest of the European Union, which is due to the economic measures put in place by the Government during the pandemic, and this would help in economic recovery next year.
In a report by the international credit agency Creditreform, which analyses various aspects of the economy, Creditreform economists have confirmed Malta’s rating at A+ level, and have stated that prospects for the Maltese economy are stable. The agency stated that in recent years Malta has acquired a legacy of economic growth which is higher than that within the eurozone. They added that the resilience of the Maltese economy is due, among other factors, to the diversification of economic sectors.
In reference to the impact of the pandemic, the economists stated that economic trends were better than the rest of the European Union, which is due to economic measures put in place by the Government during the pandemic. They further state that this has also led to a number of sectors within the digital area improving their operation and income, thanks to the sophisticated model of the Maltese economy.
The German economists are forecasting that as a result of the Government’s economic assistance to businesses, prospects for next year indicate that the year will register a strong economic recovery, with the economy expected to grow by 4.5%.
This, among others, will be helped by a package of European funds which has the potential to make good for the negative impact of the pandemic on the economy, and can lead to a stronger than forecast economic recovery.
Creditreform economists added that the deficit registered this year is expected to be at 9.7%, slightly higher than the 9.4% forecast by the Government for this year. They further stated that when the pandemic is overcome, the deficit next year is expected to drop to 6.1%.
Referring to institutions, the German analysts stated that Malta is still below the European average in regard to perception on corruption as well as press freedom and freedom of expression.
Despite this, the report notes that the Maltese authorities are making a big effort to combat money laundering, financing of terrorism and to strengthen the judicial system. The agency stated it believes the Maltese Government is committed to satisfying the conditions established by the European Commission’s Moneyval report.
The agency added that the forecasts in the report are to be taken within the context of the covid-19 pandemic.