S&P forecast Malta’s economic recovery in 2021-2022

S&P Global Ratings confirmed Malta’s rating at A-

Tista' taqra bil- Malti.

The international credit agency S&P Global Ratings confirmed Malta’s rating at A-, the government announced.

According to the international financial experts even though the pandemic will leave a negative impact on the economy, it will not lead to significant and structural damage for Malta. S&P Global Ratings said that there are various factors which will lead to a robust economic recovery in 2021-2022.

In a statement, the government explained that the report states that the measures adopted by the government led to “safeguard incomes and prevent business closures”.

The financial experts are also said that without this comprehensive fiscal response, they think the Maltese GDP would have fallen considerably lower, unemployment would have surged faster, and solvent businesses would be forced to liquidate, eroding the economy’s productive base, perhaps permanently. They have also predicted that in 2021 and 2022 Malta’s economic growth would be 5.5%.

The report also notes how the Maltese government managed to finance the measures, introduced in view of the pandemic, only because government savings increased and debt was decreased. In fact the financial experts said that Malta’s government debt will be 43% of the national wealth in 2023. They also noted how the government managed to secure €2.25 billion in European Funds.