Standard & Poor’s Financial Services LLC (S&P), one of the world’s most renouned credit-rating agencies which focuses on financial research and analyses, has reported that they expect the Maltese economy to persist in being one of the faster-growing economies, while confirming the positive outlook in the Maltese economy by rating it at BBB+/A-2.
S&P stated that the main drivers of growth reside in the energy, healthcare and education sectors. Meanwhile, it was noted that there is great capacity for growth in the tourism and recreation sectors.
The structural growth in employment, particularly amongst females, has allowed for an increase in disposable income, which in turn stimulated economic growth through private consumption. Within this scenario the labour force participation rate is expected to increase. Furthermore all these factors will allow for more development in the sustainibility of the social security system.
The report also acknowledged reductions in the deficit and debt ratios. These are expected to continue declining within the forthcoming years with 2019 seeing the debt ratio fall below 60%.
Reference to the UK Brexit result is also made in the report. S&P comment that they “expect the impact on growth of the UK’s exit from the EU to be relatively contained…”
In relation to external trade, S&P are expecting a continuing surplus in the coming years, with an average of 5.3% of the GDP between 2016 and 2019.
S&P’s comments in relation to Malta describe a situation of creditworthiness and a strong institutional framework that continuously elevates the potential growth of the Maltese economy.
