The Government welcomes the 2016 Article IV Mission report published yesterday by the International Monetary Fund (IMF) following their ten-day mission to Malta where they evaluated in depth the economic and fiscal state of the Maltese economy. In particular, it welcomes the report’s opening statement where it attributes Malta’s exceptionally strong economic growth to sound policies and favourable external and domestic conditions.
PRESS RELEASE ISSUED BY THE MINISTRY FOR FINANCE
The IMF expects the Maltese economy’s current exceptionally strong economic growth to continue in the medium-term. It also expects the strong job creation to continue in the coming years, thus keeping unemployment low. Furthermore, it expects inflation to increase modestly as import prices recover, while sizable services balances are expected to continue supporting current account surpluses.
The IMF recognises the Government’s efforts to reduce the public deficit and debt ratios. Indeed, it expects the adjustment measures coupled with robust growth to further improve the fiscal consolidation in the near term, such that the deficit is forecasted to decline to 0.6 per cent in 2017 while the debt ratio is expected to fall below the 60 per cent EU debt target rate earlier than expected.
It notes the importance of the Malta Development Bank in supporting the Maltese economy by increasing lending to credit-constrained SMEs and providing co-financing for large development and social projects.
The Government endorses the IMF’s proposal to continue the steady implementation of reforms, in particular with regard to further increasing labour force participation, enhancing SMEs’ innovation, as well as streamlining the legal process in order to support high and inclusive long-term growth.
Minister for Finance Edward Scicluna said that: “The recognition by the IMF of the Government’s economic and financial policies as ‘sound’ and as having led to robust employment growth and an improvement in public finances is the best compliment one can ask for.”
Saturday 17th December 2016