The Country Report on Malta published by the International Monetary Fund is further reconfirmation that the Maltese economy is strong, and that Malta continues to lead on economic growth within the EU.

PRESS STATEMENT BY THE MINISTRY FOR FINANCE

The Ministry for Finance notes that the IMF’s report joins other published reports by other international institutions which confirm the macro-economic stability of the Maltese economy, and how it is expected to continue exceeding expectations for the coming years.

The IMF’s report notes that economic growth remained solid in 2014, with a strong external position and with unemployment close to historical lows. It notes that “these developments reflect a relatively diversified economy and a stable banking sector.”

The Ministry also notes that the IMF mission is also foreseeing that economic growth in Malta will remain strong during the next two years, driven by investment and private consumption. This despite unfavourable external conditions.

The IMF Report welcomes Malta’s budgetary targets for 2014-2017, and also welcomes the reforms that have been taken during the last year following the enacted Fiscal Responsibility Act, while it notes the reforms to ensure the long term sustainability of public finance by introducing a private third-pillar pension scheme, as well as measures to increase administrative efficiency and strengthening primary care.

The Report also notes the importance of the Enemalta restructuring, noting that once completed this will bolster public finances and help lower energy costs. This is in contrast with claims being made by the Opposition, whereby it is trying to obscure an important reform of a public entity that represented public considerable contingent liabilities.

The Ministry also notes with satisfaction that the Mission endorsed the measures proposed by the National Reform Programme, especially the raising of labour participation and productivity and the reform of the judicial system.

The Ministry for Finance notes that the introduction of the Fiscal Responsibility Act is intended to strengthen Malta’s fiscal sustainability and financial stability, while the measures announced in the Budget 2015 are aimed at further reinforcing Malta’s competitiveness by creating an economic and business climate that is conducive to investment and enterprise.