Foreign direct investment in Malta stood at €161.4 billion at the end of 2016, an increase of €9.5 billion compared to the previous year, while direct investment abroad amounted to €62.1 billion.

According to NSO figures published yesterday, financial and insurance activities contributed €158.2 billion or 98 per cent of all FDI in Malta during the period under review.

FDI flows went up by €3.4 billion during 2016, equivalent to a decrease of €0.8 billion over the corresponding flows in 2015.

In terms of stock position, as at December 2016, direct investment abroad by resident entities was recorded at €62.1 billion.

The figures are a further confirmation of a solid economic policy

Entities offering financial and insurance activities accounted for 99.5 per cent of the total direct investment abroad.

During 2016, direct investment flows abroad decreased by €4.9 billion, compared to a fall of €4.7 billion during the previous year.

This is mainly attributed to lower claims on direct investors by €5.6 billion.

In a reaction, the government said the figures were a further confirmation of a solid economic policy, following the upgrade of Malta’s credit rating by Fitch earlier this month.

“The relationship between foreign investment and economic growth is an important one, and the government will be doing its utmost to allow this relationship to flourish by offering a competitive environment,” it said.

“The government is committed to encouraging further investment by strengthening physical and technological infrastructure, reducing bureaucracy, consistent macro-economic policy, good governance, economic stability and a guarantee of property rights.”