2015 IMF Report - Malta
Strong economic outlook for our home here in Malta!
An excerpt from the IMF's report:
Malta is growing strongly, helped by policy initiatives. However, high growth cannot be taken for granted. There is now a window of opportunity to push ahead with mutually reinforcing reforms on multiple fronts. Raising medium-term growth will require building fiscal buffers, maintaining a healthy financial sector and sustaining structural reforms.
The report summarized it's analysis under these sixteen points below. [The full IMF report can be found here.]
- Malta has remained resilient in the face of global shocks.
- The outlook is strong and risks are balanced. Growth is expected to remain solid in 2016-17
- Strong migration inflows boost potential output.
- The challenge is to preserve high and stable growth.
- The authorities’ proposed pace of fiscal consolidation for 2016-18 is appropriate.
- Fast growth in current expenditures makes targeted debt reduction challenging, particularly beyond 2016.
- Pension measures introduced in the 2016 budget are steps in the right direction.
- Ongoing efforts to strengthen fiscal governance and institutions should continue.
- The banking system remains resilient. Banks are well capitalized, profitable, and liquid.
- But nonperforming loans (NPLs) and the cost of credit remain high.
- Given the large size of the financial sector and ongoing regulatory and supervisory changes, continued policy actions are needed on multiple fronts.
- The government’s reform priorities, as outlined in the national strategy program, are appropriate.
- The authorities should ensure that reform momentum continues and the measures taken so far translate into outcomes.