EU hails progress in Malta's finances - says traffic congestion costing the economy

The European Commission has praised the progress of Malta's economy but warned that public administration still suffers from some inefficiency, and access to finance continues to pose structural challenges to investment, particularly for the private sector. It also said that traffic congestion continues to generate considerable economic and environment costs. The country report was the second today praising Malta's economy, after that by the International Monetary Fund. The EU's country report on Malta says economic growth eased somewhat in2016, but is forecast to have remained strong at 4%. Public finances have significantly improved, benefiting from the favourable macroeconomic environment, with government debt having dropped below 60% of GDP for the first time since 1998. Nevertheless, some risks to long-term sustainability remain, in view of the projected increase in age-related budgetary costs as well as a higher-than-EU-average proportion of corporate incomes taxes in tax revenue, implying higher vulnerability to economic shocks. Labour market developments show growth in Malta's employment rate, alongside a drop in the unemployment rate to record lows. These achievements...