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.]

  1. Malta has remained resilient in the face of global shocks.
  2. The outlook is strong and risks are balanced. Growth is expected to remain solid in 2016-17
  3. Strong migration inflows boost potential output.
  4. The challenge is to preserve high and stable growth.
  5. The authorities’ proposed pace of fiscal consolidation for 2016-18 is appropriate.
  6. Fast growth in current expenditures makes targeted debt reduction challenging, particularly beyond 2016.
  7. Pension measures introduced in the 2016 budget are steps in the right direction.
  8. Ongoing efforts to strengthen fiscal governance and institutions should continue.
  9. The banking system remains resilient. Banks are well capitalized, profitable, and liquid.
  10. But nonperforming loans (NPLs) and the cost of credit remain high.
  11. Given the large size of the financial sector and ongoing regulatory and supervisory changes, continued policy actions are needed on multiple fronts.
  12. The government’s reform priorities, as outlined in the national strategy program, are appropriate.
  13. The authorities should ensure that reform momentum continues and the measures taken so far translate into outcomes.