Malta seeing rapid income convergence with EU average - IMF

Malta’s economic growth continues to be one of the strongest in Europe, resulting in rapid income convergence towards the European Union (EU) average, the International Monetary Fund has said in its annual report on Malta.

"Prudent policies and reform efforts have contributed to the strengthening of private and public-sector balance sheets, while steady job creation has driven unemployment to historically low levels. Growth prospects remain favourable, yet mounting pressure on the infrastructure, rapidly rising housing costs, as well as shortages of labour and skills increasingly pose challenges," it added.

"Improving infrastructure, reducing fiscal risks and enhancing labour supply are key policy priorities to sustain high growth and promote inclusiveness.

"Attention should also be given to safeguarding financial stability and integrity, including against the risks attached to new activities involving virtual financial assets."

Among its recommendations, the IMF calls on the government to safeguard financial integrity "by continuing the reforms and swiftly remedying identified deficiencies in the implementation of the anti-money laundering and countering the financing of...