Malta’s financial performance for 2025 shows continued strengthening despite international challenges, according to the Minister for Finance, Clyde Caruana. Announcing the results, he stated that “despite strong support measures for families and businesses… the country’s finances continued to improve,” adding that government targets were not only reached but exceeded.
Economic growth is expected to remain steady, with nominal growth projected at just over 6% in 2025 and 2026, rising gradually to 7.1% by 2030. In real terms, growth is forecast to slightly decrease from 4.0% in 2025 to 3.7% in 2026, before increasing again to 4.6% by the end of the decade.
The government also reported significant improvement in the deficit. The 2025 target of -3.3% was surpassed, with the year closing 1.1 percentage points better. Over recent years, the deficit dropped from -8.7% in 2020 to -2.2% in 2025, falling below the EU threshold. It is expected to continue improving, reaching a surplus of 0.1% by 2029.
Public debt has also declined, from 50.3% in 2022 to 46.4% in 2025, and is projected to fall further to 38.9% by 2030. The Minister noted this would bring debt levels back to those seen in the mid-1990s.
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