LA VALLETTA (MALTA) (ITALPRESS/MNA) – In its annual country report, the International Monetary Fund has projected that the Maltese economy will grow by 5% in 2024 and 4% in 2025, in line with projections made by the European Commission last week. That will be among the highest in the EU. However, the IMF said fixed energy price policies should be phased out and the funds allocated for investment (including green) and productivity-enhancing policies. The energy subsidies account for a fifth of Maltàs financial deficit. However, the finance minister last month declared that the energy subsidies will stay, because they support investment, and their cost as a percentage of GDP and in real terms is well below what it was when they were introduced at the peak of the Covid crisis. The Fund warned once again, that Malta should ensure financial stability by maintaining close monitoring of risks that can arise from banks’ concentrated lending to the real estate sector. The fund said developing a long-term fiscal framework is essential for strengthening Maltàs policy decision-making and aligning fiscal planning with strategic priorities. In other parts of its report, the IMF said Maltàs tourism sector “requires more effective management”.
Malta is experiencing numerous hotel projects and an increase in other types of accommodation. The IMF added tourism may continue to grow significantly, potentially exacerbating labour shortages, infrastructure bottlenecks, and social and environmental concerns, while priority should be given to steadily implementing the Malta Tourism Strategy 2021-2030, which aims to promote sustainable and high-quality tourism.
(ITALPRESS).
– Photo credit: Tourism Office of Malta-
