About Malta

Malta is classified as an advanced economy together with 32 other countries according to the International Monetary Fund (IMF). Since there are no natural resources in Malta, the country has had to rely on its favorable climate for tourism revenue in the past together with its proficient and well educated English speaking workforce to power its economy. While tourism has been the single most important factor for the economy in the past, the country has now strategically positioned itself as hub for financial services. The legal and tax system has therefore been optimized, to make Malta more interesting to companies that wish to do business here. This has resulted in unprecedented growth in the industry over the last few years, with the registration of hundreds of companies and the generation of thousands of jobs. Financial services already account for 12 per cent of Malta’s gross domestic product (GDP).

Economic data on Malta 2025 ( Source; Central Bank of Malta )

Output, employment and prices

The Maltese economy continued to grow robustly during 2025, extending the strong pace of activity recorded in recent years. Growth in real gross domestic product (GDP) was primarily driven by net exports, though domestic demand also contributed to growth, as higher private consumption offset negative contributions from government consumption, investment and changes in inventories. Sector data show that services continued to be the main driver of growth in gross value added (GVA). The strongest contributions were recorded in the sectors incorporating professional and scientific activities, arts and entertainment, and public administration. The manufacturing sector also contributed positively, though to a lesser extent. In contrast, GVA in the construction sector declined from the peak recorded in 2024, but remained high from a historical perspective. Labour Force Survey (LFS) data for the first three quarters of 2025 show that, against the backdrop of a buoyant economy, employment continued to rise and unemployment fell further, with the unemployment rate reaching a new low. These favourable labour market developments are corroborated by data based on administrative sources, which show that on average, in 2025 the number of registered unemployed fell significantly on a year earlier. Price pressures in Malta remained slightly above the EU average. HICP inflation in 2025 reached 2.3%, despite energy prices being kept at 2020 levels by government intervention. Inflation in 2024 and 2025 is forecast at 2.5% and 2.4% respectively, with continuing pressures in food and services prices while retail energy prices are set to remain stable due to government intervention.

Malta is ideally situated in the centre of the Mediterranean, located 90Km south of Sicily and 300Km north of Libya. Although it has a population of over 580,000 inhabitants it has over 4 million tourist arrivals each year.

Gross domestic product

Malta's economy continues to stand out as one of the most resilient and dynamic in the European Union, characterized by a period of robust expansion that significantly outpaces the Euro Area average. In 2024, the nation achieved a remarkable real GDP growth of 6.8%, bringing the nominal GDP to approximately €22.3 billion. This performance was largely fueled by a powerful combination of domestic demand and a thriving services sector, with tourism and international trade playing pivotal roles in maintaining the country's economic momentum.

Looking ahead to 2025, the Maltese economy is entering a phase of stabilization, with growth projected to moderate to a more sustainable range of 3.7% to 4.0%. While this represents a deceleration from the exceptional highs of the previous year, it remains a position of strength compared to many of its continental peers. This continued growth is expected to be anchored by steady private consumption and ongoing investment, supported by a labor market that remains near full employment with jobless rates hovering around 3%.

Tourism

The year 2025 marked a historic turning point for Malta’s tourism industry, as the island surpassed the milestone of four million annual visitors for the first time. This surge, representing a nearly 13% increase over the previous year, saw total expenditure climb to approximately €3.9 billion. This growth was not merely a matter of volume but also of value; the average expenditure per capita rose to €971, signaling a successful move toward attracting higher-spending travelers. Central to this success was a significant 19% boost in winter and shoulder-month arrivals, which helped the islands transition away from their traditional reliance on the summer sun toward a more sustainable, year-round cultural and gastronomic destination.

Strategically, the sector benefited from diverse market growth, with the United Kingdom remaining the primary source of visitors while the Polish and French markets showed exceptional gains. The sister island of Gozo also emerged as a major focal point, drawing over half of all total visitors and cementing its reputation for niche, high-quality tourism. However, this record-breaking performance brought its own set of logistical hurdles,

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