Menu

Menu

Menu

Featured

PwC Malta Annual Review 2025

Have you subscribed to our latest Thought leadership?

Discover Life at PwC

Menu

Featured

Student Opportunities at PwC Malta

Our People at PwC

Explore Life at PwC

Menu

Menu

Menu

Menu

Menu

Menu

Menu

Featured

PwC Malta Annual Review 2025

PwC Malta’s Economic Outlook

PwC Malta Press Room

Loading Results

performance of the economy

Performance of the Economy

30/10/23 |

Real GDP growth rate of 4.1%

GDP is set to grow by 4.1% in real terms in 2023, driven by net exports. Next year, GDP is set to grow by a further 4.2%, driven by domestic demand.

Inflation for 2023 expected at 5.7%

The 12-month moving average rate of inflation as at September 2023 stood at 6.4% compared to 4.9% as at the same period last year (RPI). For the full year 2023, the inflation rate is expected to be 5.7%, driven by services and food prices. Meanwhile, inflation is expected to decline to 3.7% in 2024, as price growth in food and services is expected to ease.

Government expenditure - €7.2bn

Recurrent expenditure is expected to amount to €6.2bn in 2023 up from €5.8bn in 2022, while capital expenditure is set to amount to €1.1bn this year up from €0.7bn last year.

Government debt - €10bn

Government debt is set to amount to €10bn in 2023 (up from €9bn in 2022) of which €8bn comprise Malta Government Bonds.

Deficit in consolidated fund - €969mn

The deficit in the consolidated fund is set to amount to €969mn in 2023, up from €906mn last year.

Unemployment rate - 2.7%

The unemployment rate is expected to stand at 2.7% in 2023. In August 2023, the monthly unemployment rate also stood at 2.7%, which remains below the EU average rate of 6.4% in the same month.

Participation rate in labour market - 78.8%

The participation rate in the labour market has reached 78.8% during 2023.

Government subsidies - €350mn in 2024

In 2023, the Government spent €300mn on energy and food subsidies to help mitigate the effects of inflation. Meanwhile, in 2024, the Government expects to spend €350mn on such subsidies.

Economy set to amount to €18.9bn

In 2023, Malta’s economic activity is set to amount to €18.9bn, up from €17.2bn in 2022, reflecting a 9.7% nominal growth in GDP.

Government revenue - €6.5bn

Revenue for 2023 is expected to amount to €6.5bn, compared to the €5.8bn collected last year.

Debt to GDP ratio of 52.8% in 2023

Government debt is expected to reach 52.8% of GDP by the end of 2023 and set to increase to 55.3% in 2024, thus remaining below the 60% EU threshold.

Deficit - 5.0%

The deficit for 2023 is expected to amount to around 5.0% of GDP, declining to 4.5% by 2024 and to 3.0% of GDP by 2027.

Interest payments on Government debt - €209mn

Interest payments on Government debt are expected to amount to €209mn in 2023, up from €173mn last year, implying a 21% increase in debt servicing requirements. This reflects not only the increase in the absolute amount of debt, but also in interest rates.

Employment growth - 4.7%

Employment is set to grow by 4.7% in 2023. Total number of persons in employment until the second quarter of 2023 was estimated at 290k.

COLA - €12.81

The weekly cost of living adjustment for 2024 will be €12.81 per week. This adjustment will be granted in full to employees, recipients of social benefits and pensioners and pro rata to students. Pensioners will be granted a further cost of living adjustment of €2.19 per week.

Malta Budget 2024

Malta Budget 2024 Main Highlights Income & Other Taxes Social Measures Other Measures Sustainability and the Environment

© 2019 - 2026 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. This website contains content generated by or created with the assistance of AI.