The government has welcomed S&P Global Ratings’ decision to reconfirm the A- rating for Malta saying this was testament to government’s economic policy.

In a statement the government quoted the agency saying that Malta’s rating was supported by its strong economic growth, recurring current account surpluses driven by its large services exports and government’s improving budgetary and debt positions as well as fiscal management.

It was also pointed out that Malta’s forecast in terms of economic growth was positive as it was estimated at 4.3 per cent, by S&P. The latter noted that Malta’s GDP growth would continue to exceed that of peers at similar income levels and stages of development, the government said.

Furthermore, the government noted that the credit rating agency attributed this economic success to “the authorities’ commitment to policies incentivizing investment and hiring”.

The government said that S&P had highlighted government’s measures to consolidate its finances, reduce general government debt relative to GDP, and undertake structural reforms, notably those that have reduced the country’s energy bill and increased female participation in the labour market”.

Moreover, the government welcomed the agency’s confidence that public finances would continue to strengthen with an average 1 per cent annual surplus in the coming years. This would push the national debt down to 30 per cent of GDP by 2022 – half the level of 2014, the statement read.