In its spring forecast, the European Commission projects Malta’s economic performance to remain robust with a favourable macroeconomic outlook and a further decline in the budget deficit, the government said in a statement.

Indeed, it recognises that the deficit targets of 2.7 per cent and 2.1 per cent for both 2013 and 2014 respectively, were met and expects the deficit to continue declining to 1.8 per cent in 2015 and 1.5 per cent in 2016.

It recognises that Malta’s economic growth in the final quarter of the year marked the highest growth rate in the last 4 years. Robust growth in private consumption, stronger investment and Government expenditure in productive sectors were the main contributors behind the robust growth attained in 2014.

The Commission expects the main drivers of growth to be investment in a number of large-scale construction and energy projects as well as private consumption reflecting an increase in disposable incomes and favourable consumer sentiment. A substantial increase in EU funds absorption, mostly in 2015, is also expected to be a main driver of growth.

The Commission expects the falling interest rates to ease access to finance for firms bringing about a reduction in the cost of financing for micro and small enterprises.

Job creation and the unemployment rate are expected to outperform euro-area peers. The Commission expects the dynamic job creation to continue to contribute to the increased level of economic activity in Malta.

“Very pleased that the Commission acknowledges investment to be the main driver behind Malta’s economic growth,” said Minister for Finance, Prof. Edward Scicluna. He added that economic stability, brought about by good fiscal governance, is what has attracted and will continue to attract this investment.