VALLETTA (MALTA) (ITALPRESS/MNA) – S&P Global Ratings has confirmed Malta’s sovereign credit rating at ‘A’ with a stable outlook, citing improving public finances and strong economic fundamentals.
The agency said Malta is likely to exit the EU’s Excessive Deficit Procedure as its fiscal position strengthens, with the deficit forecast to fall to 2.9% next year.
Public debt is expected to drop below 40% of GDP in the coming years, supported by robust government revenues despite years of elevated spending, notably on energy subsidies.
Economic growth is projected to slow to 3.5% this year, but this remains well above the Eurozone average of 1.3%, underlining Malta’s relatively strong performance.
S&P noted a sharp decline in non-EU foreign workers, from 22,000 in 2022 to 11,000 in 2024, following tighter restrictions, warning that labour shortages could weigh on future growth.
The report highlighted improving fiscal balances after pandemic-era deficits, driven by strong tax income from iGaming and financial services, with the current deficit of 5.1% expected to fall below 3% by 2026.
Interest costs were described as low and sustainable, at 4.1% of government revenue.
However, the agency warned that fixed energy prices remain a significant fiscal risk, while competitiveness in financial services and iGaming, as well as governance standards, will be key to maintaining the rating.
S&P concluded that Malta’s strong external position, supported by tourism and services exports, justifies maintaining the ‘A’ rating with a stable outlook.
-Photo IPA Agency-
(ITALPRESS).
