‘Malta led overall growth’ amid international shocks

The EU’s Economic Forecast on Malta has praised the country’s management of public finances and overall economic performance, with Malta’s deficit standing at around 2.2% of GDP and projected to fall to 2.1% next year.

Speaking during a press conference on Malta’s economic outlook, Finance Minister Clyde Caruana said the country is expected to exit the EU’s Excessive Deficit Procedure, attributing this progress to Malta’s economic performance and fiscal discipline. In practical terms, this would mean Malta would face significantly reduced EU oversight over its public finances.

Caruana remarked that “you reap what you sow,” linking the current fiscal stability to past policy decisions.

Economy Minister Silvio Schembri also referenced the European Commission’s forecast, which he said lauds Malta’s approach to public finances and its strong economic growth despite ongoing global energy shocks and international uncertainty.

Schembri contrasted Malta’s performance with larger economies such as Germany, noting that despite their greater resources, several are experiencing weaker growth, while Malta continues to register strong momentum.

The EU Economic Forecast paints a positive outlook for Malta even amid global challenges, highlighting continued expansion in key sectors such as gaming, financial sectors, aviation, and other targeted industries. The report stated  that Malta “led overall growth” within the European context.

Overall, both ministers presented the forecast as validation that Malta is navigating international challenges while maintaining a stable and upward economic trajectory.

According to Commission projections, Malta’s economy is expected to remain the fastest growing in the EU this year and next, with growth rates forecast at 3.7% and 3.6% respectively.

By comparison, EU-wide growth is projected to average 1.1% this year and 1.4% next year. Italy, meanwhile, is forecast to grow by just 0.5%, highlighting a significantly slower pace relative to Malta’s performance.