Malta’s economic outlook for the coming years shows promising signs of growth and stability. With an anticipated increase in employment rates of 6.1% in 2023, followed by 4.6% and 4.1% in 2024 and 2025 respectively, the job market is expected to remain robust.
Inflation is projected to decrease to 2.5% in 2024 and 2.1% in 2025, indicating a controlled rise in prices. Despite the current deficit exceeding the 3% EU threshold, efforts are being made to reduce it to 4.0% in 2024 and further down to 2.6% by 2027, showcasing a commitment to fiscal responsibility.
Additionally, the debt-to-GDP ratio is expected to reach 49.5% in 2024 and 50.1% in 2025, demonstrating a manageable level of debt. The Government’s decision to subsidize energy fuels, grains, and animal feed highlights its dedication to supporting essential sectors of the economy.
Furthermore, the cost of living adjustment (COLA) for 2025 has been set at €5.24 per week, with the national minimum wage increasing to €221.78 weekly, ensuring that workers are fairly compensated. These measures collectively contribute to a stable economic environment and pave the way for continued growth in Malta’s economy.