Fitch Gives Malta Clean Bill

Ratings agency Fitch has given Malta’s economy a clean bill of health as it confirmed its A+ rating. Malta’s ratings reflect its high national income per head compared with the ‘A’ median, robust economic growth, a large net external creditor position, and strong governance indicators, the agency said in a review, MNA reported. Unemployment is low compared with ‘A’ rated peers, declining to an estimated 4% in 2017 from 4.7% in 2016, and household net worth is high, it said. But Fitch said Malta’s ratings are constrained by the small and highly open nature of its economy, which makes it vulnerable to external developments, and its high, albeit declining level of contingent liabilities and outsized banking sector relative to GDP. Real GDP grew at a robust pace in the third quarter of 2017 at 7.2% and growth is estimated to reach 7% for the whole year, boosted by a strong net trade contribution. Economic growth will be slightly slower at 5.9% in 2018, but faster than the ‘A’ median five year average of 3%.