Malta: Selected Issues
IMF Staff Country Reports, January 29, 2018
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- Malta: Selected Issues
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Bibliographic details
- Published: January 29, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484339510.002
Infrastructure gaps
- Infrastructure shortfalls are most striking in road and energy networks, both in quality and quantity.
- These gaps are reflected in an unparalleled gap in the approximated public capital stock.
Long-term GDP benefits from public investment
- Long-term GDP benefits from increasing public investment are estimated to be substantial, ranging between 5¼ and 18¼ percent in net present value over 30 years.
Actions by authorities
- Upgrading and diversifying the energy system.
- Launching a comprehensive transport strategy.
- These efforts are characterized as going in the right direction and should be implemented in a budget-neutral manner to support a further decline in the public debt-to-GDP ratio.
Fiscal position and policy recommendations
- Malta’s fiscal position has improved considerably in recent years, yet further buildup of fiscal buffers is needed against possible adverse macroeconomic conditions.
- Recommended measures:
- Reallocating public spending from current to capital expenditure.
- Making public investment more efficient.
- Objective: boost infrastructure while maintaining fiscal sustainability.
Source: "Malta: Selected Issues", IMF Staff Country Reports 2018, 020.
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