International agency Creditreform Rating reaffirmed Malta in level A+ with a stable outlook, the government said Saturday.
The report by the German experts says Malta has a track record of “vivid economic growth well above that of the euro area over recent years”. Malta’s resilience is a result of its diversification in the economic sector.
In spite of the pandemic, the report said, several digital sectors had improved their business.
The report noted that Malta fared better than its European counterparts since the pandemic started, especially in the first quarter. It is forecast that there will be an economic recovery in 2021.
“Thanks to wage subsidies to safeguard employment, the fallout from the corona crisis on the labour market has been limited,” the report noted.
The European financial package has the potential of making up for the negative impact the economy may sustain.
The report noted the “generally high quality of the institutional framework”, adding that “government seems committed to deliver on continued effort required to satisfyingly deal with rule of law and anti money laundering”.
The German experts, according to the government, are convinced that the fiscal indicators will improve and that, in spite of the increase in the deficit, the financial situation is “relatively benign in the euro area context”. This situation “should lay the foundation for a timely economic recovery,” the report said.
The weight of the national debt will not exceed 60 per cent of the GDP, the report added, and will diminish once the pandemic is over.