Since 2015, Malta's Fitch credit rating has consistently remained at 'A' level. Through the government's continuous efforts in debt management and fiscal balance, the Maltese government has successfully maintained a surplus in recent years, with the surplus amount showing an upward trend.
With improvements in its tax system, a rapidly developing economy, and alleviation of pension pressures, in August 2017, Fitch upgraded Malta's credit rating from A to A+.
Stable Economic Growth Environment
In addition to the extremely low-risk government bonds, Malta's economy and housing prices have maintained stable growth. Over the past five years, Malta's economy has shown robust growth, ranking second in the European Union in terms of economic growth rate. In 2017, its GDP growth rate was approximately 4.5%, while the GDP growth rates for 2015 and 2016 were around 7%.
Real GDP Growth Percentage & Inflation Rate
In recent years, Malta's GDP growth rate has far exceeded its inflation growth rate, indicating an increase in the wealth of the Maltese citizens. Malta's stable political environment and favorable economic conditions have attracted a large number of investors.
For the past four years, Malta has consistently maintained a net inflow of investment funds each year, with amounts significantly greater than outflows. As of the end of June 2016, Malta's foreign direct investment inflow was €156.7 billion, while its outward direct investment was €61.8 billion. The main factor contributing to total investment inflow is financial and insurance activities, accounting for 95.6%.
The Future of Malta's Economy
Malta is a neutral country that does not actively participate in wars, and its residents share a unified belief, with no cultural differences or religious conflicts. Besides being a sunny vacation paradise, the most distinctive words to describe it are safety and stability.
With a Fitch rating equivalent to that of China (A+), Malta has no homeless individuals or refugees, and its per capita GDP has reached $26,577, approximately 180,000 Chinese Yuan, far exceeding Shanghai's per capita GDP of 104,000 Yuan, not to mention China's overall per capita GDP. Malta is indeed one of the 32 developed countries in the world!
Fitch predicts that Malta will continue to maintain a surplus in its finances in the coming years, and Malta's government bonds will remain in a favorable position in the coming years.