Following the recent
DBRS sovereign rating announcement on Malta, the below is the
analysts' take on the sovereign rating of the country.
"DBRS expects Malta to remain one of the euro area's
top growth performers in the next couple of years. Although
Malta's medium-term prospects remain solid, DBRS expects
economic activity to decelerate gradually as infrastructure
bottlenecks and labour shortages become more evident. Major risks
to the outlook stem from an escalation of protectionist trade
measures hurting global trade and growth as well as the impact on
tourism from Brexit.
DBRS is of the view that Malta's public finances will
continue to improve in coming years. Given the difficulty in
predicting the proceeds from Malta's Individual Investors
Programme or IIP, DBRS considers appropriate the authorities'
intention to comply with the government's Medium-Term
Objective, net of the IIP. DBRS expects the debt ratio to continue
declining related to the primary
