In its annual report about the Maltese economy, the International Monetary Fund says that Malta’s economy grew more than anticipated – the predictions were for a 3.5% rise, but this was superseded to 4%, the government said in a statement.

In their analysis, IMF economists said that “Malta’s economic growth has been exceptionally strong”, also noting the “robust employment growth and an improvement in public finances”. “Sound policies” were important for this growth, the report noted.

The IMF also predicted that “strong job creation is expected to continue in the coming years, keeping unemployment low”.

The report noted the decrease in the deficit and predicts a deficit of 0.6% in 2017, down from the 1% forecast earlier this year. 

“This adjustment, along with favourable economic conditions, will support a reduction of public debt to below 60 percent of GDP”, the report adds.

The IMF praised the government’s spending reviews and Enemalta’s restructuring, as well as the setting up of the Malta Development Bank, the government said.