VALLETTA (MALTA) (ITALPRESS/MNA) – Malta has maintained its A (high) credit rating with a stable outlook from international agency Morningstar DBRS, which praised the country’s eurozone membership, strong external position, and resilient banking sector.
Prime Minister Robert Abela welcomed the decision, calling it “a testament to our economy’s resilience.” He said Malta’s choice to avoid austerity “is paying off,” as economic growth continues to support deficit and debt reduction.
The rating keeps Malta’s long- and short-term ratings at A (high) and R-1 (middle). However, DBRS warned that high government spending remains a concern. Malta’s deficit stood at 3.6% of GDP in 2024, well above the EU average of 2.1%, and is projected to narrow only gradually in the coming years.
New household support measures and ongoing energy subsidies are slowing fiscal consolidation. The subsidies alone are forecast to cost 0.7% of GDP in 2025.
After years of rapid growth, Malta’s economy is cooling. Real GDP expanded by 6.8% in 2024 but slowed to 3.1% in early 2025. The Central Bank expects growth to average around 3.5% through 2027. Tourism remains robust, with arrivals up 12.1% in the first seven months of 2025.
Public debt remains moderate at 46.2% of GDP but is expected to approach 49% by 2026. The banking system is strong but heavily exposed to real estate, with property-related loans making up 71.5% of all resident bank lending.
Morningstar DBRS noted that while Malta performs in line with EU peers on rule of law, it lags in government effectiveness and corruption control. The country remains under an EU excessive deficit procedure launched in 2024.
– photo IPA Agency –
(ITALPRESS).
