Issue link: https://maltatoday.uberflip.com/i/1539233
7 maltatoday | SUNDAY • 7 SEPTEMBER 2025 NEWS Il-konsultazzjoni pubblika bħalissa miftuħa Żur is-sit facts.gov.mt u semma leħnek. Fitch affirms Malta's credit rating at 'A+' with stable outlook FITCH Ratings has reaffirmed Malta's long-term foreign currency credit rating at 'A+' with a stable outlook, citing the coun- try's robust growth performance, strong external finances, and eurozone member- ship. The rating agency said Malta's economy remains one of the fastest-growing in the EU, expanding by 86% since 2014 com- pared to just 14% in the euro area. Aver- age GDP growth has been 6.5% over the past decade, with per capita income now standing at 109% of the EU average. Fitch expects growth of 4.3% in 2025 and 4.1% in 2026, following 6% in 2024. Employment has also surged, with the labour force reaching 320,000 workers in the first half of 2025, up from 180,000 a decade ago, supported by net immigration and higher participation among Maltese nationals. Unemployment stood at 3.1% in 2024, well below the eurozone median. On the fiscal front, Malta's budget defi- cit narrowed to 3.7% of GDP in 2024, with further reductions expected to 3.0% in 2025 and 2.7% in 2026. Debt levels are forecast to remain stable at around 47% of GDP, significantly lower than the EU's 60% threshold and the median for similar- ly rated countries. Fitch noted that Malta remains under an EU excessive deficit procedure but said strong growth momentum should allow the government to bring the deficit back within the 3% limit by 2025 or 2026, fast- er than the standard four-year adjustment horizon. The ratings agency also pointed to Mal- ta's solid external position, including a current account surplus averaging 7% of GDP and one of the largest net external creditor positions among rated sover- eigns. The country's banking system was described as liquid, well-capitalised, and profitable, with a non-performing loan ra- tio of just 1.9%. However, governance challenges remain a constraint. Fitch highlighted a deteriora- tion in World Bank governance indicators since 2013, particularly in government effectiveness and control of corruption. These concerns, coupled with Malta's small and open economy, leave it vulner- able to external shocks and regulatory changes affecting key sectors. Fitch said Malta's rating could come un- der pressure if public debt rises sharply or if external shocks undermine growth and revenues. Conversely, stronger fiscal per- formance and meaningful improvements in governance could support an upgrade in the future. NICOLE MEILAK nmeilak@mediatoday.com.mt Fitch Ratings has reaffirmed Malta's sovereign credit rating at 'A+' with a stable outlook, citing strong growth and solid public finances but warning that governance weaknesses remain a key challenge