Imf, Malta facing rise in income inequality and greater pressures on infrastructure

ROMA - La Presidente del Consiglio riceve a Palazzo Chigi il premier di Malta Dichiarazioni alla stampa. Nella foto Robert Abela (ROMA - 2023-06-15, Stefano Carofei) p.s. la foto e' utilizzabile nel rispetto del contesto in cui e' stata scattata, e senza intento diffamatorio del decoro delle persone rappresentate

LA VALLETTA (MALTA) (ITALPRESS/MNA) – The International Monetary Fund said in its report on Malta that the “impressive” recovery from the pandemic has brought a rise in income inequality and greater pressures on the country’s infrastructure largely supported by “large inflows of foreign workers, allowing rapid labor force growth”. The IMF noted that the infrastructure like roads and public services such as the health sector did not caught up with the population growth. IMF also observed that the gap between high and low earners has risen above the EU and poverty risk appear to be on the rise, with the elderly population showing signs of being increasingly at risk. The IMF once again urged the Maltese government to phase out the energy subsidies. These subsidies, the IMF argued, disincentivise energy savings and green investments and account for some 40% of Malta’s deficit. The government is expected to spend over €320m on energy subsidies this year alone. The IMF expects Malta’s economy to continue to grow at a moderate pace, with inflation gradually easing over the coming years. The Maltese Prime Minister Robert Abela described the energy subsidies as “crucial”. In a Facebook post, he added their cost would not prevent the government from investing further in the country. Meanwhile, the IMF remarked that the property market is showing some signs of slowdown, with residential property prices “decelerating” and real estate transactions dipping. It also called on Malta to develop a roadmap for the implementation of the global minimum corporate tax regime. The Maltese government already declared that it would be delaying the introduction of this measure, which is expected to impact some 660 multinational companies with a base in Malta.


Foto: Agenzia Fotogramma

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