Economy is in ‘good shape’ – Edward Scicluna

The European Commission conclusion that, when compared to the last year, the macroeconomic challenges in Malta no longer constitute macroeconomic risks, was welcomed by finance minister Edward Scicluna.  

"The report, unlike the one published last year, is confirming that across various fronts, the Maltese economy and public finances are getting in good shape and are meeting the ambitious targets set by the Maltese Government," Scicluna said.

In its In-Depth Reviews on the prevention and correction of macroeconomic imbalances published today, the Commission noted that "the macroeconomic challenges in Malta no longer constitute substantial macroeconomic risks and are no longer identified as imbalances in the sense of the Macroeconomic Imbalance Procedure (MIP)."

It further notes that "risks to the sustainability of private and public sector debt and the stability of the financial sector appear contained."

In particular, Scicluna welcomed the Commission's conclusions that "the housing market has stabilised and thus risks arising from over-exposure to property are limited"; that "private debt is on the decrease"; that "the corporate deleveraging is taking place in an orderly manner and credit market pressures are limited."

The minister also underlined the Commission's conclusions that "as regards public finances, Malta is expected to meet its nominal deficit targets in 2013 and 2014."

As regards external sustainability, the Commission also positively noted that "trade performance has been positive" and that "the current account balance is in surplus." In particular the Commission also noted that "the export performance of the Maltese economy has been successful".