IMF report highlights Malta's progress in public finances

Government's prudent policies and advanced structural reforms had helped to strengthen private and public-sector balance sheets in Malta, the International Monetary Fund noted in its 2017 Article IV Mission Concluding Statement.

Finance Minister Edward Scicluna welcomed the report and said it made it clear how an increase in job creation had resulted in a decrease in unemployment to historically low levels.

According to the report, Malta achieved its medium-term objective of a structural balance in 2016 –  three years ahead of schedule. The reasons for this success is buoyant tax revenues and contained expenditure growth.

The report predicts that the 2017 general Government surplus will reach 1.3% of GDP, with Malta’s economic growth showing to be among the strongest in Europe. Public debt fell below 60% of GDP, and income has moved closer to the European Union average.

Growth is expected to increase over the coming years, and the IMF expects the associated risks to be balanced.

“I am pleased to note that the IMF recommendations on building larger fiscal buffers that would add strength to Malta’s fiscal position are already being implemented through the attainment of an annual fiscal surplus. Furthermore, through the 2018 Budget, we are also addressing the IMF recommendations on social and affordable housing,” Finance Minister Edward Scicluna said.

The report also supports Government’s plans in regards to the road network and public transportation which would lead to improved well-being and higher business productivity. Domestic banks remain sound and profitable.