## Malta: 2015 Article IV Consultation-Press Release; and Staff Report

_IMF Staff Country Reports, January 20, 2016_

## Source details

**Canonical URL:** [Malta: 2015 Article IV Consultation-Press Release; and Staff Report](https://www.imf.org/en/publications/cr/issues/2016/12/31/malta-2015-article-iv-consultation-press-release-and-staff-report-43632)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/malta-2015-article-iv-consultation-press-release-and-staff-report-43632/index.md)
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## Bibliographic details
- Published: January 20, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513531090.002

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### Overview
- The 2015 Article IV Consultation highlights that Malta’s economy is growing strongly.
- Real GDP growth has been one of the highest in the euro area since the beginning of the crisis.
- Growth drivers cited include vibrant domestic demand, large infrastructure projects, and a stable banking sector.
- Unemployment is at historical lows, and labor participation is increasing.
- The current account remains in surplus, and the external position is broadly in line with fundamentals.
- Growth is expected to remain solid in 2016–17, driven initially by domestic demand and later by a gradual recovery of external demand.
- Inflation is projected to pick up gradually owing to the positive output gap and higher imported inflation on account of the weaker exchange rate.

### Economic performance and drivers
- Real GDP growth: described as "one of the highest in the euro area since the beginning of the crisis."
- Domestic demand: characterized as "vibrant" and a primary near-term growth driver.
- Large infrastructure projects: identified as a significant support to economic activity.
- Banking sector: described as "stable," supporting macro-financial stability.
- Labor market: unemployment at historical lows; labor participation is increasing.

### External position and inflation dynamics
- Current account: remains in surplus.
- External position: broadly in line with fundamentals.
- Inflation outlook:
  - Projected to pick up gradually.
  - Drivers: positive output gap and higher imported inflation due to a weaker exchange rate.

### Outlook and projections
- Growth outlook: expected to remain solid in 2016–17.
  - Near term: driven initially by domestic demand.
  - Later period: driven by a gradual recovery of external demand.
- Inflation outlook: gradual pick-up tied to domestic demand pressures (positive output gap) and imported inflation from exchange rate developments.

### Subjects and keywords (as provided)
- Subjects: Aging, Banking, Financial institutions, Income, Labor, Labor markets, National accounts, Nonperforming loans, Population and demographics
- Keywords: Aging, bank, consultation discussion, CR, financial market, financing, Global, growth financing, IMF staff estimate, Income, ISCR, Labor markets, Malta, Malta's economy, Nonperforming loans, SDDS preparation, summary trade statistics, upside risk, volume estimate

### Publication metadata and key statistics
- Pages: 54
- Volume: 2016
- Issue: 020
- Series: Country Report No. 2016/020
- DOI: https://doi.org/10.5089/9781513531090.002
- Stock No: 1MLTEA2016001
- ISBN: 9781513531090
- ISSN: 1934-7685
- Publication date on landing page: January 20, 2016

*International Monetary Fund. Malta: 2015 Article IV Consultation-Press Release; and Staff Report (IMF Staff Country Reports 2016, 020).*

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## Content in this bundle

- [Cr1620 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2016/_cr1620.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/malta-2015-article-iv-consultation-press-release-and-staff-report-43632_