“Real economic activity in 2018 is robust and currently at around 5.4 per cent, making it one of the higher ones in the EU. This has had a positive effect on public debt that continues to decrease as a percentage of GDP, with Government also managing to contain inflation that at present stands at around 1.7 per cent,” says Maria Micallef, Managing Partner at RSM. “As a result of fast economic growth, however, the current pressure on labour resources across the board is likely to continue.”

Going forward, Ms Micallef asserts that the fiscal priorities of Government mainly revolve around four areas: redistribution of wealth towards the lower earners; improvement of infrastructure to support strong growth; innovation to harness new niches such as blockchain technology and AI; and a move towards a greener economy, all within an overall context of retaining a Budget surplus.

More details can be accessed here.