In February 2015, Malta economic growth has been revised upwards to 3.1% for the period covering 2014 and 2015 by the International Monetary Fund. This was welcome news compared to the original growth forecast of 2.2% for the same period.
Bearing in mind that the IMF had only recently also issued the largest downwards revision of its world economic growth forecast of the last 3 years, news of postive results in Malta economic growth has been well received.
IMF remarked that in spite of a rise in the number of women working, Malta reached a low record level of unemployment. IMF praised free child services, the 'narrowing in' on social benefits and the decline in inflation (stemming from lower utility, electricity and fuel rates.).
The IMF considered various facets of Malta's improvements, not least of which were the efforts towards improving external balances to overturn the trade imbalance of 2.5% in 2009 to a 9% surplus in 2014.
"Malta’s economy continues to weather the global crisis well. Spillovers from turmoil in international financial markets have been contained due to low reliance on external financing by the government and banks. Real GDP growth has been one of the highest in the euro area since the beginning of the crisis, supported by relatively diversified exports, a recent recovery in domestic demand, and a stable banking sector. Unemployment is close to historical lows and among the lowest in the euro area. The external position is strong, and progress has been achieved in reducing the budget deficit." (IMF Press Release No. 15/75, February 26, 2015)
According to government sources Malta economic growth led to a strong reduction in the government deficit. The prediction is that this would drop to 1.7 % next year while debt would fall to less than 70% this year and nearly 60% by 2020.
While the report is most welcome, Malta vouches to continue to work hard to strengthen its economy and implement any necessary reforms that would further strengthen its economic position.
