LA VALLETTA (MALTA) (ITALPRESS/MNA) – Malta’s economy is at a critical crossroads and requires a fundamental transformation away from its current reliance on population growth and domestic demand, according to a stark new report by the Malta Fiscal Advisory Council (MFAC).
In its annual assessment of the government’s 2025 Annual Progress Report, the MFAC delivers a sobering analysis of the country’s economic trajectory, highlighting long-term sustainability challenges that threaten Malta’s competitiveness on the global stage. At the heart of the Council’s concerns is a growing productivity crisis.
Labour productivity in Malta has remained stagnant for three consecutive years, even as employee compensation continues to rise. The report notes that average wages increased by 4.5% annually over this period, with another 5% hike expected in 2025. This mismatch between wage growth and productivity has led to soaring unit labour costs (ULCs), eroding Malta’s competitive edge internationally. The MFAC warns that unless addressed, these trends could make Maltese businesses increasingly vulnerable to global market pressures.
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(ITALPRESS).
