IMF Praises Government Work on Malta

IMF releases statement praising government work on Malta

In a recent state­ment, the IMF praised Malta’s gov­ern­ment work. Sta­ble eco­nom­ic growth in par­tic­u­lar was one of the pos­i­tive out­comes of work well done. Sus­tained struc­tur­al reforms, the strength­en­ing of both the pub­lic and pri­vate sec­tors and a sus­tain­able fight against unem­ploy­ment will lead to pos­i­tive eco­nom­ic devel­op­ment of the coun­try.

The IMF empha­sized that this was not just a mat­ter of let­ting good admin­is­tra­tion run its course. Rather, it is the result of the hard work that the gov­ern­ment has under­tak­en in recent years.

In fact, Malta’s econ­o­my has been grow­ing steadi­ly for sev­er­al years, mak­ing it one of the fastest-grow­ing economies in Europe. Above-aver­age growth rates have led to one of the low­est unem­ploy­ment rates in the island’s his­to­ry.

Challenges continue to arise, as can be expected

But even with all the praise and the con­tin­ued pos­i­tive out­look for the future, the IMF is con­tin­u­al­ly remind­ing us of the new­er chal­lenges pre­sent­ed by the changes instilled.

The road net­work and pub­lic trans­port are not able to keep pace with the country’s rapid devel­op­ment. In this sit­u­a­tion, the gov­ern­ment must act through infra­struc­ture reforms to ensure that traf­fic flows again. This isn’t just con­cern­ing a traf­fic jam that will take you 20 min­utes longer to get to and from work. It’s about keep­ing eco­nom­ic growth in line with the country’s infra­struc­tur­al devel­op­ment.

Malta’s real estate boom should benefit low-income households as well

The gov­ern­ment would do well to pro­mote social hous­ing and also to take var­i­ous mea­sures to ensure that even low-income house­holds will be able to buy real estate. The source of this demand is cer­tain­ly due to the mas­sive increase of price on the real estate mar­ket. Mal­ta has expe­ri­enced a real estate boom in recent years. There are a mul­ti­tude of new build­ings, includ­ing sev­er­al sky­scrap­ers, cur­rent­ly being devel­oped on the island.

The IMF’s report also high­lights Malta’s bal­anced bud­get. For 2017, the IMF expects a sur­plus of 1.3% of GDP. Debt has fall­en below 60% of GDP, which is con­sid­ered to be a very pos­i­tive sign.

The finan­cial sec­tor is rat­ed sta­ble and the banks have been praised for their sol­id and prof­itable work.

About Philipp Sauerborn

In 2005, Philipp Sauer­born joined the firm of St. Matthew in Lon­don, one of the lead­ing Ger­man account­ing firms in Eng­land renowned for its exper­tise in cor­po­rate, com­mer­cial and tax law, as a depart­ment head. After three years, he was a part­ner and man­ag­ing direc­tor.
Towards the end of 2011, he decid­ed to move to Mal­ta, where he first worked at inter­na­tion­al law firms and con­sul­tan­cies in an employed and con­sult­ing capac­i­ty. Since the begin­ning of 2013, he has been a senior employ­ee at Dr. Wern­er & Part­ner. Mr. Sauer­born is cur­rent­ly com­plet­ing his ADIT ‑Advanced Diplo­ma in Inter­na­tion­al Tax.

View All Posts

Leave a Reply

Your email address will not be published.