Update 11.35am - Adds Prime Minister's comments

Ratings agency Fitch has confirmed Malta's 'A' rating while upgrading its country forecast from 'stable' to 'positive'. 

The upgrade means each of the big three rating agencies - Fitch, Moody's and Standard & Poor's - have upgraded their outlook for Malta during this legislature, the government said in a statement. 

In their assessment, Fitch analysts predicted that government debt would fall to 58 per cent of GDP by 2018 and were positive about changes to the pension system. 

Analysts said ongoing energy projects will help grow the economy while making it more efficient, with structural reforms to improve competitiveness also having had a positive effect. 

Fitch believes local household income will rise while inflation will remain muted, with the effect of improving people's purchasing power. 

"Yet again, independent foreign experts have confirmed our economy's strength," the government said in a statement. "Rather than austerity, this government has focused on investment and growth. In the coming months, the government will be working on further measures to stimulate economic growth," the government said. 

'Time to focus on the poor': PM Muscat

Prime Minister Joseph Muscat welcomed the Fitch report, saying it was confirmation of what Maltese families are experiencing in their everyday lives. 

The challenge, he said, was translating this economic success into tangible benefits for society's poorest.

Social benefit recipients were down by 40 per cent and 14 per cent more people could now be categorised as 'middle class', Dr Muscat claimed.