VALLETTA (MALTA) (ITALPRESS/MNA) – Fitch Ratings has affirmed Malta’s sovereign credit rating at A+ maintaining a stable outlook, citing strong economic growth, high income per capita and membership of the European Union and euro area.
The agency expects Malta’s economy to grow by just under 4% this year and next, following 4% growth last year. It said the slight moderation partly reflects government measures aimed at controlling the number of foreign workers.
Fitch noted that Malta’s economy has expanded by 90% since 2015, compared with 16% growth across the euro area. GDP growth averaged 6.5% over the period.
The agency said Malta has one of the EU’s highest employment rates, with unemployment at 3.1% in 2025, compared with an EU average of 6.3%. Employment rose from 198,000 in 2015 to 330,000 in the first quarter of this year.
Information technology, tourism and financial services were identified as the main drivers of economic and employment growth.
Fitch also highlighted an improvement in Malta’s public finances, with the deficit falling from 4.4% of GDP in 2023 to 2.2% in 2025, helping the country exit the EU’s excessive deficit procedure.
Public debt is expected to remain around 46% of GDP between this year and 2028, below the EU’s 60% reference threshold.
However, Fitch raised concerns about Malta’s deteriorating governance indicators. It noted that Malta ranked 71st out of 84 countries in the World Bank’s 2024 Worldwide Governance Indicators and recorded a 20% deterioration in its corruption-control indicator between 2013 and 2024.
The agency also warned about the government’s energy subsidy, estimated at €230 million this year, or almost 1% of GDP, falling to €200 million next year.
While the subsidy protects households and businesses from inflationary shocks, Fitch said it provides little incentive to reduce electricity consumption and could have significant long-term fiscal consequences.
Fitch described Malta’s banking sector as resilient, robust and highly liquid, supported mainly by increased lending to households.
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