While Malta’s external sustainability has improved, access to alternative sources of finance for SMEs is still limited and competitiveness can further benefit from the removal of structural bottlenecks, the European Commission’s country specific report for Malta states.
The report says that the emergence of export-oriented services has boosted net external trade, resulting in a surplus in the current account balance.
It says that the public debt ratio is lower than the euro area average and approaching the 60 per cent-of-GDP threshold, but the sustainability of public finances remains a challenge in the long run.
It says there is still untapped potential in the labour market to foster economic growth, notes that Malta has one of the lowest unemployment rates in Europe but says that activity rates continue to be among the lowest in the EU, particularly among women.
“The supply of skills has not fully adjusted to labour market requirements. To offset this, reliance on supply of skills through foreign labour has increased in recent years.
“The authorities have been investing significantly in the education and training system in recent years. This notwithstanding, education and...
