VALLETTA (MALTA) (ITALPRESS/MNA) – The European Commission’s autumn forecast shows Malta’s economy set to maintain robust growth over the next five years, though at a gradually slower pace. Growth is projected at 4% this year, easing to 3.8% in 2026 and 3.5% in 2027.
According to the Commission, this year’s expansion is driven mainly by strong public and private consumption, sustained investment, tourism, gaming and financial services. Investment is expected to rise by 6% this year, fall to 1% in 2026, and rebound to 3% in 2027.
Employment is forecast to grow by 3.7% in 2025, partly supported by immigration, though inflows are expected to moderate under stricter rules. Worker shortages, however, are set to persist.
Economic growth is projected to ease to 2.9% in both 2026 and 2027. Wages are expected to rise by 5.9% this year, slowing to 2.9% in 2027.
The unemployment rate is forecast at 4% this year, dropping to 2.9% in 2026 and remaining steady in 2027. Inflation is expected at 2.4% this year, falling to 2.1% next year and 2% the year after.
On public finances, the Commission notes the government deficit is set to decline to 3.2% in 2025, supported by higher tax revenue and strong tourism. Tax cuts for families next year will reduce income tax revenue, while public spending continues to rise.
The deficit is expected to narrow to 2.8% in 2026 and 2.6% in 2027. Public debt is projected to remain stable at around 47.3% of GDP.
-Photo IPA Agency-
(ITALPRESS).
