A+ Outlook stable

It said that Malta's economy is growing fast thanks to a rebound in tourism, among other factors, and that its strengths are balanced against its large banking sector, the small size of its economy, which is highly vulnerable to external developments, and a recent deterioration in public finances with large fiscal deficits, which have led to a sharp increase in the moderate public debt burden

Fitch has observed that the Maltese economy rebounded strongly in 2021, following a severe contraction in 2020 Real GDP rose 9 4% in 2021, significantly exceeding its November forecast of 5.7%. It has lowered its growth forecast to 4 2% from 6 1% for this year due to the stronger-than-expected 2021 recovery and (mostly) indirect effects from the invasion of Ukraine and imposed sanctions on Russia.

The main contribution to growth came from investments heavily impacted by acquiring imported aircraft equipment Private consumption remained sound in 2022, supported by the accumulation of past savings and favourable labour market conditions, while inflation levels remained relatively contained relative to other EU countries

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