Updated - IMF positive about Malta but sees deficit target as 'unattainable'

Updated - Adds prime minister's comment - The International Monetary Fund Executive Board has praised Malta's economic performance but warned that the government’s deficit target of 2.7 percent of GDP in 2013 appears unattainable in light of expansionary discretionary measures, optimistic revenue targets, and developments so far. "Malta has shown remarkable resilience in the face of a major crisis in Europe. Since the beginning of the crisis, the average growth of the Maltese economy has been one of the best in the euro area and the unemployment rate remains one of the lowest. This resilience was underpinned by robust service sector export growth and a sound banking sector," the IMF said. "As a result, the current account balance has improved gradually in recent years, turning into surplus in 2012. However, economic growth slowed in 2012 and remains below potential, reflecting a weak external environment and subdued domestic demand. "Although activity is expected to pick up moderately going forward, uncertainties abound. A protracted period of slower growth in Europe or re-emergence of euro area financial stress would negatively affect the Maltese economy." The IMF praised the...