The Finance Ministry released a report by the National Audit Office which assessed the Ministry’s macroeconomic forecasts on the Maltese economy.

The Ministry welcomed the reports’ conclusion, namely that the Ministry is adopting the correct approach by sticking to the main assumptions of internationally reputable institutions when forecasting during a time of international economic instability.

It especially welcomed the report’s remark that “through the use of its macro-economic model and the ad-hoc information available during the forecasting exercise, the forecasts presented are internally consistent and follow sound economic principles.”

The report was completed and presented to the Government at the beginning of September. This evaluation and assessment document was prepared by the NAO, which was tasked by the Minister for Finance to carry out an evaluation and endorsement of the macroeconomic forecasts for the years 2013 and 2014 underpinning Government’s fiscal plans.

The Ministry said that this interim decision is in line with the Government’s plan, as specified in the Report on Effective Actions for Deficit Correction published on Monday, to embed the role of an independent fiscal institution within the National Audit Office, itself an independent institution tasked with the auditing of Government finances, and is a body established by the Constitution of the Republic of Malta.