VALLETTA (MALTA) (ITALPRESS/MNA) – Malta’s economy continued to surge ahead of the rest of Europe, recording the fastest growth rate in the European Union during the first half of 2025, Finance Minister Clyde Caruana announced in his Budget speech on Monday evening.
Gross Domestic Product rose by 3.1 per cent in real terms, more than double the EU average. Caruana said the expansion was driven mainly by domestic demand and strong service exports, particularly in the digital and information sectors, which grew by 7.4 and 10.3 per cent respectively.
Tourism remained a key pillar of growth, with 2.2 million visitors in the first seven months of the year — up 13 per cent— and total spending rising 19 per cent.
Forecasts indicate continued momentum, with 4.1 per cent growth expected in 2025 and inflation stabilising at 2.2 per cent. The Cost-of-Living Adjustment for next year will be €4.66 per week, alongside an additional payment benefiting some 85,000 families.
Malta’s deficit has fallen sharply from 8.7 per cent during the pandemic to 3.3 per cent, projected to decline further to 2.8 per cent next year. Public debt, at 47.1 per cent of GDP, remains among the lowest in the EU.
Caruana credited Malta’s “strong fundamentals” and fiscal discipline for enabling continued investment without austerity, saying the Budget will “protect families, sustain businesses, and strengthen the economy for future generations.”
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