VALLETTA (MALTA) (ITALPRESS/MNA) – Fitch Ratings has reaffirmed Malta’s long-term foreign-currency issuer default rating (IDR) at ‘A+’ with a stable outlook, citing strong economic performance but warning about governance concerns and persistent budget deficits.
The agency highlighted Malta’s “robust” growth, high per capita income and EU membership, but balanced these against the country’s small economic size and a “significant deterioration in governance perception.” Malta’s economy has grown by 86% since 2014, far outpacing the Eurozone average of 14%. Fitch reported average GDP growth of 6.5% over the past decade, compared to a 3.8% median for other ‘A’-rated countries. Per capita GDP stood at 109% of the EU average last year. Future growth forecasts remain positive, with Fitch projecting 4.3% in 2025 and 4.1% in 2026, following a strong 6% in 2024. Growth has been fuelled by rapid labour force expansion, though tighter immigration rules are expected to slow momentum.
Employment surged as the workforce nearly doubled from 180,000 in 2015 to 320,000 in 2024, supported by around 100,000 foreign workers. Malta’s unemployment rate stands at 3.1%, among the lowest in the EU. The government’s budget deficit narrowed to 3.7% of GDP in 2023, with Fitch expecting further declines to 2.5% by 2027. Debt levels are projected to stabilise near 47% of GDP—below both the EU’s 60% ceiling and the ‘A’ median of 57%. Still, the agency warned that Malta’s World Bank governance indicators have fallen sharply since 2013, particularly in government effectiveness and corruption control. Fitch noted that progress in addressing governance weaknesses could support an upgrade, while rising debt or external shocks could trigger a downgrade.
– photo IPA Agency –
(ITALPRESS).
