Latest Updates – Malta News Briefing – Saturday 5 December

Update 1400 – Fitch confirms Malta A rating

International credit rating agency Fitch confirmed Malta’s rating at A+, with stable prospects.

The agency said that Malta’s rating is supported by high per capita income levels, a large net external creditor position and EU and eurozone memberships. These strengths are balanced against its large banking sector and the small and highly open nature of its economy, which makes it vulnerable to external developments.

The Stable Outlook balances Fitch’s expectation that GDP growth will recover and the budget deficit narrow in 2021 and 2022, against continued downside risk from the path of the coronavirus and its effect on the tourism sector and public finances, as well as adverse developments in governance.

Fitch has revised down its GDP growth forecast to -7.7% in 2020 (from -6.9% previously) in anticipation of a further fall in domestic and external economic activity in 4Q20 and worse-than-expected tourist season this summer.

Update 1300 – Covid-19 Update

The number of Covid-19 active cases has gone down below 2,000 after 169 recoveries exceeded 103 new cases. Just over 3100 swab tests were made yesterday.

Morning Briefing

Updated 0900 – Newspaper Review

Muscat testifies in Caruana Galizia inquiry

Former Prime Minister Joseph Muscat sought to turn tables on the inquiry board investigating the role of the state in the murder of journalist Daphne Caruana Galizia, accusing it of focusing on the workings of the current government rather than the workings of the Maltese State.

During this testimony, Muscat sought to distance himself from former Chief of Staff Keith Schembri, insisting that he relied on the explanations of Konrad Mizzi and Keith Schembri when the Panama Papers came out and hinting that he could have sacked the pair.

At the same time, Muscat said that once Keith Schembri was accused of money-laundering there was no option for him but to resign as PM, since Schembri was fundamental for the mechanism of the state.

The former PM confirmed his friendship with Yorgen Fenech, having been introduced to him in 2008 by the late Lino Spiteri. Muscat said the WhatsApp chat group he had with Fenech and Schembri was used to share pictures of food, wine and whisky but denied that it discussed women.

Muscat also denied he was relocating to Dubai with his family, a claim made in a US blog.

Covid-19 update

123 new COVID-19 cases were reported today by health authorities, while 105 persons recovered. The new cases were detected following 3,100 swabs. 

Meanwhile, in her weekly briefing, Prof Charmaine Gauci said that survivors of COVID-19 should still get vaccinated because natural immunity from the infection is “low and short-lived” but vaccine immunity is “shown to be stronger and last longer,” Charmaine Gauci has urged.

Asked when Malta would realistically be able to return to normality, Gauci explained: “It depends on how many doses we’re going to get, what the vaccine uptake is going to be and how much the vaccine decreases the risk of transmission in the community.”

CDE News