Malta’s GDP growth for 2024 has been revised to be higher by the European Commission, according to its winter forecast. The forecast reveals a projected economic growth of 4.6% for the year, accompanied by a moderation in inflation to 2.9%. The driving forces behind Malta’s GDP growth in 2024 are anticipated to be sustained strong growth in exports and private consumption. Malta’s GDP growth for 2024 is notably higher than the Euro area average of 0.8%. The Commission anticipates a pickup in investment growth after the construction slowdown in 2023, with public consumption expected to remain robust.
Looking ahead to 2025, the winter forecast predicts a growth rate of 4.3%, similar to the autumn forecast. In 2025, the growth rates of consumption, investment, and net exports are expected to stabilize at slightly lower levels compared to 2024. The Commission’s estimate for GDP growth in 2023 has been revised upward to 6.1%, driven by higher economic activity in the first two quarters of the previous year and strong growth of 2.4% in the third quarter.
Despite government intervention to maintain energy prices at 2020 levels, inflation measured by the HICP index reached 5.6% in 2023. The winter forecast anticipates a moderation in inflation for 2024 and 2025 to 2.9% and 2.7%, respectively. Pressure in food and services prices is expected to persist, while retail energy prices are projected to remain stable due to government intervention. These forecasts, though lower than the autumn 2023 forecast, still surpass the Euro area average, despite substantial government subsidies aimed at ensuring price stability in the energy and fuel sectors.
In light of Malta’s upward revision of the economic forecast by the European Commission, this reflects the resilience and potential of Malta’s economy. With GDP growth well above the Euro area average and a positive trajectory anticipated for the coming years, along with its strategic geographical position at the crossroads of Europe, North Africa, and the Middle East, Malta provides unparalleled access to diverse markets and emerges as a compelling choice for those seeking a dynamic and prosperous setting for their next entrepreneurial endeavour. Should you require any further information in this respect, please do not hesitate to get in touch with our experts.
 Louise Vella |  Szabolcs Toth |
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