VALLETTA (MALTA) (ITALPRESS/MNA) – Malta’s economy is expected to maintain strong growth over the next three years despite growing uncertainty caused by the conflict in the Middle East, the Central Bank of Malta said.
In its latest economic outlook, the Bank forecast GDP growth of 3.7% in 2026, easing slightly to 3.6% in 2027 before rising to 3.8% in 2028.
Inflation is projected to remain broadly contained at around 2.5% over the next two years and to ease further to 2.2% in 2028.
The Bank said private consumption would continue to underpin economic activity, helped by recent income tax reforms.
Employment growth is expected to slow gradually, while unemployment is forecast to remain among the lowest in Europe, falling to around 2.9%.
The outlook also points to improving public finances, with the Government’s deficit projected to narrow steadily and public debt expected to decline to 44.1% of GDP by 2028.
However, the Bank warned that escalating tensions in the Middle East could pose risks to international trade, tourism, aviation and maritime activity. Higher global energy prices were identified as the main threat to the inflation outlook.
Despite these risks, the Bank said the Government’s policy of keeping energy prices stable would help shield households and businesses from the immediate effects of external price shocks.
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(ITALPRESS).
