Abstract
This 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, supported by 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.
Fund Relations
(As of October 31, 2015)
Membership Status
Joined: September 11, 1968; Article VIII
General Resources Account
| SDR Million | Percent Quota | ||
| Quota | 102.00 | 100.00 | |
| Fund holdings of currency | 72.67 | 71.25 | |
| Reserve Tranche Position | 29.36 | 28.79 | |
| Lending to the Fund | |||
| Borrowing Agreement | 1.37 | ||
| SDR Million | Percent Quota | ||
| Quota | 102.00 | 100.00 | |
| Fund holdings of currency | 72.67 | 71.25 | |
| Reserve Tranche Position | 29.36 | 28.79 | |
| Lending to the Fund | |||
| Borrowing Agreement | 1.37 | ||
SDR Department
| SDR Million | Percent Allocation | ||
| Net cumulative allocation | 95.40 | 100.00 | |
| Holdings | 84.51 | 88.59 | |
| SDR Million | Percent Allocation | ||
| Net cumulative allocation | 95.40 | 100.00 | |
| Holdings | 84.51 | 88.59 | |
Outstanding Purchases and Loans
None
Financial Arrangements
None
Projected Obligations to Fund1
(SDR million; based on existing use of resources and present holdings of SDRs)
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2015 | 2016 | 2017 | 2018 | 2019 | |
| Principal | |||||
| Charges/Interest | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 |
| Total | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 |
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2015 | 2016 | 2017 | 2018 | 2019 | |
| Principal | |||||
| Charges/Interest | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 |
| Total | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 |
Exchange Rate Arrangement
Member of the euro area since January 1, 2008. Malta maintains an exchange system that is free of restrictions on the making of payments and transfers for current international transactions.
Article IV Consultation
Malta is on the standard 12-month consultation cycle. The previous consultation discussions took place during December 3–15, 2014, and the staff report (Country Report No.15/32, 02/06/2015) was discussed and the consultation was completed on February 23, 2015.
Technical Assistance
Technical Assistance
| Date | Department | Subject |
|---|---|---|
| April 2015 | FAD | Revenue Administration |
| November 2014 | FAD | Revenue Administration |
| March 2014 | FAD | Strengthening Public Financial Management |
| May 2013 | STA | Balance of Payments |
| April 2009 | STA | SDDS subscription finalization |
| November 2006 | STA | Producer price index/SDDS preparations |
| April and | (expert visits) | |
| December 2007 | ||
| June 2005 | STA | ROSC Data Module |
| October 2002–January 2003 | MFD | FSAP missions (joint with World Bank) |
| March 2001 | STA | Money and banking statistics |
| February 1999 | MAE | Monetary operations and liquidity Forecasting |
Technical Assistance
| Date | Department | Subject |
|---|---|---|
| April 2015 | FAD | Revenue Administration |
| November 2014 | FAD | Revenue Administration |
| March 2014 | FAD | Strengthening Public Financial Management |
| May 2013 | STA | Balance of Payments |
| April 2009 | STA | SDDS subscription finalization |
| November 2006 | STA | Producer price index/SDDS preparations |
| April and | (expert visits) | |
| December 2007 | ||
| June 2005 | STA | ROSC Data Module |
| October 2002–January 2003 | MFD | FSAP missions (joint with World Bank) |
| March 2001 | STA | Money and banking statistics |
| February 1999 | MAE | Monetary operations and liquidity Forecasting |
Resident Representative
None
Statistical Issues Appendix
(As of November 11, 2015)
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision is adequate for surveillance purposes. Significant progress in improving macroeconomic statistics has been made in close cooperation with the European Central Bank (ECB) and Eurostat while upgrading statistical systems to meet the euro area standards. Most macroeconomic statistics can now be accessed through Eurostat and Haver Analytics. The country has subscribed to the SDDS since December 1, 2009, with the metadata posted on the IMF’s Dissemination Standards Bulletin Board. | |
| National Accounts: Malta compiles its national accounts in accordance with the guidelines of ESA 2010 since October 2014. The effect of the conceptual differences from ESA 1995 on the estimated level of GDP in 2010 was a relative small upward revision of 0.5 percent. Data on retail and consumer prices, labor market indicators, and tourism arrivals are released monthly, usually with a short lag. A harmonized index of consumer prices has been published since May 2004. These data are available through Eurostat and Haver Analytics as well as via the Internet at the Central Bank of Malta (CBM) and the National Statistical Office (NSO) websites. The NSO releases quarterly national accounts data in current and constant prices with a lag of about two months, annual nonfinancial sectoral accounts in current prices with a lag of about 11 months, and a monthly index of industrial production with a lag of just over a month. However, national accounts data have been subject to substantial revisions, often affecting several years. The reasons for revisions include large statistical discrepancies (captured under changes in inventory stocks), particularly on the first release and revisions of deflators. Furthermore, supply-side GDP estimates by type of economic activity are only available at current prices and compilation of volume measures is currently progressing. Volume estimates of expenditure GDP are obtained using annual-chain linking with 2010 as the reference year. The producer price index for total industry and agricultural products have been published, but that for services sector is still under discussion. National accounts imports and exports data are not disaggregated into goods and services. Annual Financial balance sheets and transactions by sectors are published on the Eurostat website. However, data on household savings are not available. | |
| Price Statistics: Data on retail and consumer prices are released monthly, usually with a short lag. A harmonized index of consumer prices has been published since May 2004. These data are available through Eurostat and Haver Analytics and via the Internet at the Central Bank of Malta (CBM) and the National Statistical Office (NSO) websites. The producer price index for total industry and the agricultural price index have been published, but that for services sector is still under discussion. | |
| Government finance statistics: Fiscal statistics meet requirements, with quarterly accrual-based data on general government operations compiled in accordance with the ESA2010 methodology and disseminated with a one-quarter lag. The general government comprises data from the consolidated fund of government adjusted to include other accounts of government, the accruals elements, and the financial performance of the Extra Budgetary Units and of the Local Councils. The NSO also publishes monthly statistics on the cash operations of the central government, for which the authorities plan to utilize the targeted timeliness flexibility option in light of additional time required for the final month of the fiscal year. | |
| Monetary and Financial Statistics: Monetary statistics are timely and of good quality. Since the entry into the euro area in January 2008, monetary data for IMF statistical publications have been obtained through a gateway arrangement with the ECB, thus reducing the reporting burden of the country. | |
| Financial Sector Surveillance: Malta has reported Financial Soundness Indicators beginning from 2005 along with metadata, which are available on the IMF’s website (http://fsi.imf.org). | |
| External sector statistics: Summary data (merchandise trade, current account balance, and selected financial account data) are released by the NSO on a quarterly basis with a lag of about three months. More detailed BOP and IIP data are released quarterly, the latter with a lag sometimes of about one year. Summary trade statistics are released monthly with a lag of about 40 days. The CBM publishes the external debt templates in line with requirements of the SDDS, including both gross and net external debt. In line with the European regulation, Malta has transitioned to BPM6 and has revised the estimates back to 2008. In line with the BPM6 requirements, the new data include estimates for the SPEs and other coverage improvements, affecting in particular the primary incomes and the financial account (direct and portfolio investments), as well as position data (IIP). The BPM6 implementation and data back casting entailed a series of data revisions recently. | |
| II. Data Standards and Quality | |
| The country has subscribed to the SDDS since December 1, 2009, with the metadata posted on the IMF’s Dissemination Standards Bulletin Board. | A data ROSC was published in 2006. |
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision is adequate for surveillance purposes. Significant progress in improving macroeconomic statistics has been made in close cooperation with the European Central Bank (ECB) and Eurostat while upgrading statistical systems to meet the euro area standards. Most macroeconomic statistics can now be accessed through Eurostat and Haver Analytics. The country has subscribed to the SDDS since December 1, 2009, with the metadata posted on the IMF’s Dissemination Standards Bulletin Board. | |
| National Accounts: Malta compiles its national accounts in accordance with the guidelines of ESA 2010 since October 2014. The effect of the conceptual differences from ESA 1995 on the estimated level of GDP in 2010 was a relative small upward revision of 0.5 percent. Data on retail and consumer prices, labor market indicators, and tourism arrivals are released monthly, usually with a short lag. A harmonized index of consumer prices has been published since May 2004. These data are available through Eurostat and Haver Analytics as well as via the Internet at the Central Bank of Malta (CBM) and the National Statistical Office (NSO) websites. The NSO releases quarterly national accounts data in current and constant prices with a lag of about two months, annual nonfinancial sectoral accounts in current prices with a lag of about 11 months, and a monthly index of industrial production with a lag of just over a month. However, national accounts data have been subject to substantial revisions, often affecting several years. The reasons for revisions include large statistical discrepancies (captured under changes in inventory stocks), particularly on the first release and revisions of deflators. Furthermore, supply-side GDP estimates by type of economic activity are only available at current prices and compilation of volume measures is currently progressing. Volume estimates of expenditure GDP are obtained using annual-chain linking with 2010 as the reference year. The producer price index for total industry and agricultural products have been published, but that for services sector is still under discussion. National accounts imports and exports data are not disaggregated into goods and services. Annual Financial balance sheets and transactions by sectors are published on the Eurostat website. However, data on household savings are not available. | |
| Price Statistics: Data on retail and consumer prices are released monthly, usually with a short lag. A harmonized index of consumer prices has been published since May 2004. These data are available through Eurostat and Haver Analytics and via the Internet at the Central Bank of Malta (CBM) and the National Statistical Office (NSO) websites. The producer price index for total industry and the agricultural price index have been published, but that for services sector is still under discussion. | |
| Government finance statistics: Fiscal statistics meet requirements, with quarterly accrual-based data on general government operations compiled in accordance with the ESA2010 methodology and disseminated with a one-quarter lag. The general government comprises data from the consolidated fund of government adjusted to include other accounts of government, the accruals elements, and the financial performance of the Extra Budgetary Units and of the Local Councils. The NSO also publishes monthly statistics on the cash operations of the central government, for which the authorities plan to utilize the targeted timeliness flexibility option in light of additional time required for the final month of the fiscal year. | |
| Monetary and Financial Statistics: Monetary statistics are timely and of good quality. Since the entry into the euro area in January 2008, monetary data for IMF statistical publications have been obtained through a gateway arrangement with the ECB, thus reducing the reporting burden of the country. | |
| Financial Sector Surveillance: Malta has reported Financial Soundness Indicators beginning from 2005 along with metadata, which are available on the IMF’s website (http://fsi.imf.org). | |
| External sector statistics: Summary data (merchandise trade, current account balance, and selected financial account data) are released by the NSO on a quarterly basis with a lag of about three months. More detailed BOP and IIP data are released quarterly, the latter with a lag sometimes of about one year. Summary trade statistics are released monthly with a lag of about 40 days. The CBM publishes the external debt templates in line with requirements of the SDDS, including both gross and net external debt. In line with the European regulation, Malta has transitioned to BPM6 and has revised the estimates back to 2008. In line with the BPM6 requirements, the new data include estimates for the SPEs and other coverage improvements, affecting in particular the primary incomes and the financial account (direct and portfolio investments), as well as position data (IIP). The BPM6 implementation and data back casting entailed a series of data revisions recently. | |
| II. Data Standards and Quality | |
| The country has subscribed to the SDDS since December 1, 2009, with the metadata posted on the IMF’s Dissemination Standards Bulletin Board. | A data ROSC was published in 2006. |
Appendix I: Table of Common Indicators Required for Surveillance
Malta: Table of Common Indicators Required for Surveillance
(As of November 11, 2015)
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
These columns should only be included for countries for which Data ROSC (or a Substantive Update) has been published.
This reflects the assessment provided in the data ROSC or the Substantive Update (published on …, and based on the findings of the mission that took place during…) for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O); largely observed (LO); largely not observed (LNO); not observed (NO); and not available (NA).
Same as footnote 7, except referring to international standards concerning (respectively) source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
Malta: Table of Common Indicators Required for Surveillance
(As of November 11, 2015)
| Date of latest observation (For all dates in table, please use format dd/mm/yy) |
Date received |
Frequency of Data7 |
Frequency of Reporting7 |
Frequency of Publication7 |
Memo Items:8 | ||
|---|---|---|---|---|---|---|---|
| Data Quality – Methodological soundness9 |
Data Quality – Accuracy and reliability10 |
||||||
| Exchange Rates1/ | Current | Current | D | D | D | ||
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities 2/ | Sep 2015 | Oct 2015 | M | M | Q | ||
| Central Bank Balance Sheet | Sep 2015 | Oct 2015 | M | M | Q | … | … |
| Consolidated Balance Sheet of the Banking System | Sep 2015 | Oct 2015 | M | M | Q | … | … |
| Interest Rates 3/ | Sep 2015 | Nov 2015 | M | M | M | ||
| Consumer Price Index | Sep 2015 | Oct 2015 | M | M | M | O, LO, O, O | O, O, LO, LO, O |
| Revenue, Expenditure, Balance and Composition of Financing 4/ – General Government 5/ | Sep 2015 | Oct 2015 | M | M | Q | O, LO, O, LO | O, O, O, LO, O |
| Revenue, Expenditure, Balance and Composition of Financing 4/– General Government | Sep 2015 | Oct 2015 | M | M | Q | ||
| Stocks of General Government and General Government-Guaranteed Debt 6/ | 2015:Q2 | Oct 2015 | Q | Q | Q | O, LO, O, O | LO, O, O, O, LNO |
| External Current Account Balance | 2015:Q2 | Sep 2015 | Q | Q | Q | ||
| Exports and Imports of Goods and Services | 2015:Q2 | Sep 2015 | Q | Q | Q | ||
| GDP/GNP | 2015:Q2 | Sep 2015 | Q | Q | Q | O, LNO, O, LO | LO, O, LO, LO, LO |
| Gross External Debt | 2015:Q2 | Oct 2015 | Q | Q | Q | ||
| International Investment Position 7/ | 2015:Q1 | Jul 2015 | Q | A | A | ||
| Exchange Rates 1/ | Current | Current | D | D | D | ||
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities 2/ | Sep 2015 | Oct 2015 | M | M | Q | ||
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
These columns should only be included for countries for which Data ROSC (or a Substantive Update) has been published.
This reflects the assessment provided in the data ROSC or the Substantive Update (published on …, and based on the findings of the mission that took place during…) for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O); largely observed (LO); largely not observed (LNO); not observed (NO); and not available (NA).
Same as footnote 7, except referring to international standards concerning (respectively) source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
Malta: Table of Common Indicators Required for Surveillance
(As of November 11, 2015)
| Date of latest observation (For all dates in table, please use format dd/mm/yy) |
Date received |
Frequency of Data7 |
Frequency of Reporting7 |
Frequency of Publication7 |
Memo Items:8 | ||
|---|---|---|---|---|---|---|---|
| Data Quality – Methodological soundness9 |
Data Quality – Accuracy and reliability10 |
||||||
| Exchange Rates1/ | Current | Current | D | D | D | ||
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities 2/ | Sep 2015 | Oct 2015 | M | M | Q | ||
| Central Bank Balance Sheet | Sep 2015 | Oct 2015 | M | M | Q | … | … |
| Consolidated Balance Sheet of the Banking System | Sep 2015 | Oct 2015 | M | M | Q | … | … |
| Interest Rates 3/ | Sep 2015 | Nov 2015 | M | M | M | ||
| Consumer Price Index | Sep 2015 | Oct 2015 | M | M | M | O, LO, O, O | O, O, LO, LO, O |
| Revenue, Expenditure, Balance and Composition of Financing 4/ – General Government 5/ | Sep 2015 | Oct 2015 | M | M | Q | O, LO, O, LO | O, O, O, LO, O |
| Revenue, Expenditure, Balance and Composition of Financing 4/– General Government | Sep 2015 | Oct 2015 | M | M | Q | ||
| Stocks of General Government and General Government-Guaranteed Debt 6/ | 2015:Q2 | Oct 2015 | Q | Q | Q | O, LO, O, O | LO, O, O, O, LNO |
| External Current Account Balance | 2015:Q2 | Sep 2015 | Q | Q | Q | ||
| Exports and Imports of Goods and Services | 2015:Q2 | Sep 2015 | Q | Q | Q | ||
| GDP/GNP | 2015:Q2 | Sep 2015 | Q | Q | Q | O, LNO, O, LO | LO, O, LO, LO, LO |
| Gross External Debt | 2015:Q2 | Oct 2015 | Q | Q | Q | ||
| International Investment Position 7/ | 2015:Q1 | Jul 2015 | Q | A | A | ||
| Exchange Rates 1/ | Current | Current | D | D | D | ||
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities 2/ | Sep 2015 | Oct 2015 | M | M | Q | ||
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
These columns should only be included for countries for which Data ROSC (or a Substantive Update) has been published.
This reflects the assessment provided in the data ROSC or the Substantive Update (published on …, and based on the findings of the mission that took place during…) for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O); largely observed (LO); largely not observed (LNO); not observed (NO); and not available (NA).
Same as footnote 7, except referring to international standards concerning (respectively) source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.