Moody’s assessment that Malta’s fiscal consolidation had been put a “good footing” was yesterday welcomed by the government.

Fiscal consolidation amid more buoyant economic conditions would continue to support Malta’s public finances in 2016, the investment services agency said.

It estimated real GDP would increase by 4.3% in 2015 and exports would recover.

While government spending was high, higher tax revenues would push the deficit down to 1.2% in 2016. The repayment of tax arrears by Enemalta would help reduce the national debt to 65.9 per cent this year.

The government said that the confidence shown by Moody’s was expected to attract more foreign investors.