The government has welcomed the International Monetary Fund’s (IMF) assessment of Malta’s economy.

The IMF has revised its growth expectations for Malta, from 2.2% this year to 3.1%.

This revision has to be cast in the light of the IMF’s downward revision of global economic growth, the government said.

The IMF says that the economic growth is supported by strong local demand, contrary to the Opposition’s assertion that local demand is weak. The strong growth projection factors in the government’s investment in the energy sector, the government said.

The IMF said this demand is driven by strong household income from rising wages and employment.

Despite more women seeking jobs, unemployment has gone down, the government said.

IMF experts praised the free childcare service as well as the tapering of social benefits. It also noted that inflation is down thanks to the reduction in energy and water prices, as well as fuel prices, the government said.

Malta has made impressive strides in improving its external balances, the IMF said, and the government deficit is down.

The IMF expects the deficit to go down to 1.7 per cent next year and debt to 70 per cent, falling to 60 per cent by 2020.