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On 29 January the IMF published its staff report on Malta's 2017 Article IV Consultation. In this report the IMF noted that Malta remained one of the fastest-growing economies in Europe, owing to favourable economic conditions and sound policies that have led to structural reforms. Such rapid growth in 2017 was driven by export-oriented services and dynamic job creation, which according to the Fund is expected to persist in the coming years, though at a more moderate pace. Such rapid economic expansion and the accompanying population growth are, however, putting pressure on physical infrastructure. Meanwhile, the report observes that domestic banks remained profitable and well-capitalised, though despite improving asset quality, legacy non-performing loans, albeit declining, still represent a challenge for the banking sector. The IMF notes that the fiscal position remained in surplus, supported by buoyant revenues and contained expenditure growth, while the current account in the Balance of Payments also remained in surplus, driven by a sizeable balance of services.
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