The IMF has published concluding statement of the 2019 Article IV Mission to Malta.

Malta’s economic growth continues to be one of the strongest in Europe, resulting in rapid income convergence towards the European Union (EU) average, said IMF in its concluding statement.

Prudent policies and reform efforts have contributed to the strengthening of private and public-sector balance sheets, while steady job creation has driven unemployment to historically low levels.

Here is the short summary of the IMF concluding statement

• Real GDP growth was very high in the first three quarters of 2018, accompanied by robust employment growth supported by strong inflows of foreign workers. Growth is projected at close to 6.5 percent in 2018
• IMF has lauded Malta for the government’s plan to balance the budget excluding IIP proceeds
• IMF also has said that  mounting pressure on infrastructure, rapidly rising housing costs, as well as shortages of labor and skills increasingly pose challenges.
• Attention should also be given to safeguarding financial stability and integrity, including against the risks attached to new activities involving virtual financial assets, said IMF.

Malta IIP

The government’s plan to balance the budget excluding IIP proceeds in the medium term is appropriate. Out turns as of November 2018 suggest another year of fiscal surplus – above the initial government target of 0.5 percent of GDP – owing to buoyant tax revenues and IIP proceeds.

Public debt is declining fast and is projected to drop below 40 percent of GDP by 2021.

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