S&P Global Commends Malta’s Economy

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RIF Trust on S&P Global’s Latest Maltese Economy Verdict

Shukri Harfoush is RIF Trust’s Maltese Residency and Citizenship by Investment (RCBI) specialist who recently gave his feedback on the IMF endorsement of Malta’s economy.

Our Maltese RCBI expert states: “On Friday, December 6, 2024, S&P Global affirmed Malta’s A-/A-2 credit ratings. This is a positive development if you’re exploring the prospect of investing in the country’s Residency by Investment program, Malta Permanent Residence Programme (MPRP).”

“It’s equally reassuring if you’re contemplating Maltese Exceptional Investor Naturalization (MEIN), Malta’s Citizenship by Investment program.”

Shukri expands on his argument: “The more you see respected authorities echo their approval of Malta’s economy, the more assured you can be of your investment in a new residency or second citizenship in Malta.”

The S&P Global Big Picture View of Malta’s Economy

According to S&P Global’s overview, “Malta’s economy is performing well and shows limited signs of cooling.” This explains this esteemed credit rating agency’s A-/A-2 long- and short-term sovereign credit ratings. S&P predict a stable outlook for the following 2 years.

The disclosure next describes 2 scenarios. There’s an optimistic scenario and a more conservative one. Both are dependent on action from the Maltese government.

S&P Global advises that it will potentially increase Malta’s ratings if there is physical evidence of Malta’s per capita growth. The agency says it will also consider raising the rating if there is a “meaningful reduction in the government’s exposure to oil prices, for instance through an elimination of energy subsidies or a very significant increase in renewable generation.”

By the same token, S&P announces its intention to decrease the ratings if the surplus of the current account unraveled due to Malta failing to vie with external competitors. Also, if the Maltese government backtracked on its commitment to combating money laundering and improving governance this could impact the rating negatively.

A Deep Dive into the S&P Global Disclosure Data

S&P Global predicts a real GDP growth of 6.2% by the end of 2024. Their forecast for 2025-27 sees Malta’s economy decelerating with an average of 4%. Malta’s enduring popularity as a tourist destination is one of the factors behind this.

The levels of government debt in Malta are controllable. This year will see a gross debt stock of 48% of GDP. S&P Global estimates that this will level off due to the strength of Malta’s economy.

There is a slight downward trajectory of real GDP growth. The next 2 years will see it 1.2% down on the 5.2% average from 2020-2023. Growth is slower but it’s continuing due to 2024 tourist levels being 19% higher from January to October than in the same period in 2023, with tourist spending increasing by 22%.

The S&P Global December 2024 release concludes with some key statistics. It shows nominal GDP rising from €14 billion in 2018 to €27 billion in 2027. That’s an increase from $16 billion to $31 billion.

Choosing Between Maltese Residency and Citizenship in Malta

Both programs attract investors. The MPRP is the answer to Schengen visa woes. You and your family will be able to travel freely across the 29 countries that make up the Schengen area.

Unlike other European Residency by Investment programs, in Greece, Portugal, and Spain, there’s no chance to naturalize. However, MEIN is Europe’s only direct route to Citizenship by Investment. You’ll be able to secure a Maltese passport.

So, contact us now and we’ll show you how the healthy state of Malta’s economy allows you to apply for either program from a position of strength. We’ll be able to advise whether MEIN or MPRP is a better fit for you and your family. Only by learning about your particular circumstances will we be able to steer you in the right direction.