Malta Economic Outlook
A service-oriented economy:
Malta has a small but dynamic economy, heavily reliant on services such as tourism, financial services, and online gaming. The country has established itself as a global hub for iGaming and fintech, attracting international firms with its business-friendly regulations and EU membership. Financial services and blockchain technology have also been key growth sectors in recent years.
Tourism and trade:Tourism is a major pillar of the Maltese economy, contributing around 15% of GDP. The country’s rich historical sites, Mediterranean climate, and strong cruise ship industry make it a popular destination. However, Malta also relies on trade and maritime transport, with its strategic location between Europe and North Africa making it an important shipping hub.
Challenges and economic risks:Despite its strong growth, Malta faces challenges such as labor shortages, housing affordability, and risks related to its financial sector. The country has been under EU scrutiny for its tax policies and financial regulations, particularly regarding anti-money laundering measures. Additionally, its high dependency on tourism makes it vulnerable to external shocks like global recessions or geopolitical tensions.
Malta’s economic outlook:Malta’s economy is set to grow steadily, supported by continued strength in tourism, gaming, and financial services. However, regulatory challenges in the financial sector and environmental concerns linked to rapid urbanization need to be addressed. Investments in infrastructure, digital innovation, and green energy will be key to ensuring long-term sustainability and resilience.
Malta's Macroeconomic Analysis:
Nominal GDP of USD 24.3 billion in 2024.
Nominal GDP of USD 24.3 billion in 2024.
Nominal GDP of USD 22.2 billion in 2023.
GDP per capita of USD 40,978 compared to the global average of USD 10,589.
GDP per capita of USD 43,957 compared to the global average of USD 10,589.
GDP per capita of USD 43,957 compared to the global average of USD 10,589.
Average real GDP growth of 6.6% over the last decade.
Average real GDP growth of 6.6% over the last decade.
Average real GDP growth of 6.6% over the last decade.
Sector Analysis
In 2022, services accounted for 79.7% of overall GDP, manufacturing 6.8%, other industrial activity 12.8%, and agriculture 0.7%. Looking at GDP by expenditure, private consumption accounted for 43.4% of GDP in 2023, government consumption 17.7%, fixed investment 19.5%, and net exports 19.4%.International trade
In 2023, manufactured products made up 82.3% of total merchandise exports, mineral fuels 5.4%, food 10.1%, ores and metals 0.8% and agricultural raw materials 0.1%, with other categories accounting for 1.3% of the total. In the same period, manufactured products made up 69.2% of total merchandise imports, mineral fuels 16.1%, food 13.6%, ores and metals 0.9% and agricultural raw materials 0.3%, with other goods accounting for -0.1% of the total. Total exports were worth USD 4.60 billion in 2024, while total imports were USD 7.40 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 6.6% in the decade to 2023. To read more about GDP growth in Malta, go to our dedicated page.
Fiscal policy
Malta's fiscal deficit averaged 2.1% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 4.2% in the decade to 2024. For more information on Malta's unemployment click here.
Inflation
Inflation averaged 2.1% in the decade to 2024. Go to our Malta inflation page for extra insight.
Monetary Policy
Euro Area monetary policy rate ended 2024 at 3.15%, up from 0.05% a decade earlier. See our Malta monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the euro weakened by 20% vs the U.S. dollar. For more info on the euro, click here.
Economic situation in Malta
In Q1 2025, annual GDP growth slipped a little further down the slope, declining for the fourth consecutive quarter. Private consumption decelerated, as did government spending, likely curtailed by the European Commission’s excessive deficit procedure. On the flipside, a rebound in fixed investment kept economic growth strong by Euro area standards. Switching to Q2, Malta’s GDP growth should have hit the bottom of the slope. Inflation rose above the ECB’s 2.0% inflation target in April–May, likely hampering private spending; in April, retail sales growth worsened compared to the Q1 average. Moreover, industrial output shrank in April after rising in the prior quarter. On a more positive note, the tourist sector—accounting for about a quarter of GDP and employment—likely continued to fuel economic momentum, with tourist arrivals growth above 15% in April.Malta Economic Forecasts
Projections out to 2034.42 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 11 expert analysts.
Want to get insight on the economic outlook for Malta in the coming years? FocusEconomics collects projections out to 2034 on 42 economic indicators for Malta from a panel of 11 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Malta economy. To download a sample report on the Malta's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.