The renowned statistical rating agency Fitch Ratings recently confirmed Malta’s rating with A and affirmed that Malta’s economy has a stable outlook. According to the agency, Malta’s economy has outperformed the other countries in the eurozone. The agency also estimated that the real GDP grew by 3.4% in 2014, which is more than the 2.5% growth in 2013. The average of the eurozone is 0.9%. It is estimated that this trend will continue this year, and that Malta will remain above the eurozone average.
Private consumption is the main contributor to the economic growth. It is supported by the increase of disposable income, the lower unemployment rate and the decrease of energy prices.
Fitch Ratings also estimated that the government deficit decreased by 2.3% of the GDP in 2014, compared to 2.7% in 2013. The year 2015 has an equally positive outlook. The agency also noted that government debt has decreased 68.8%, which was mainly due to a repayment of arrears by Enemalta. Fitch also said in their report that the deal between Shanghai Electric Power and the Maltese government has the potential to increase the profitability of Enemalta and to reduce their debt.
Overall, Malta received very positive ratings. The outlook for the future is stable and very positive. It is a good time to think about relocating a business to the Maltese islands, as the government offers attractive incentives for companies that move their business operations to Malta, or individuals that relocate due to career opportunities or personal reasons. Companies in Malta can enjoy an attractive taxation structure, and individuals can benefit from a low tax rate on high income. If you would like more information about a company relocation to Malta, you are welcome to contact us at the office of Dr. Werner & Partner.
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