Malta Poised to Lead Eurozone Growth Through 2030

Malta is set to remain one of the eurozone’s strongest economic performers through the end of the decade, according to the latest International Monetary Fund (IMF) projections, thus is expected to sustain robust growth, maintain low unemployment, and continue outperforming its European peers in several key economic indicators.

Strong Economic Momentum

The IMF forecasts Malta’s GDP to expand by around 4 per cent annually up to 2030, almost four times the expected 1.1 per cent average growth rate for the eurozone. This continued momentum reflects the resilience of Malta’s diversified economy, driven by services such as finance, gaming, tourism, and technology. Malta’s economy rebounded quickly from the pandemic and global inflation, supported by strong domestic demand and a steady inflow of foreign investment. The IMF’s data indicates that this pace of growth positions Malta as a key outlier in the eurozone, where most countries are experiencing slower expansion amid tighter monetary policy and weaker global trade.

Healthy External Position

In 2024, Malta recorded a current account surplus of around 5.5 per cent of GDP, more than double the European Union average of 2.6 per cent. This figure highlights Malta’s competitive export and service sectors, particularly its thriving digital industries and professional services that cater to international markets. The IMF expects this surplus to ease slightly to 4.4 per cent by 2026, as domestic demand strengthens and imports increase. Nevertheless, Malta’s external position is projected to remain solid, well above the EU’s forecast average of 2.2 per cent, an indicator of healthy economic fundamentals and trade performance.

Stable Inflation Outlook

While inflation remains a concern across Europe, Malta’s consumer price growth is projected to stay relatively contained. The IMF anticipates inflation to rise modestly to 2.4 per cent in 2025, compared with an EU average of 2.2 per cent, before stabilising at around 2 per cent by 2030. This trajectory aligns closely with the European Central Bank’s inflation target, suggesting that Malta’s price stability will not pose a major risk to its long-term growth.

Record-Low Unemployment

Malta’s labour market continues to perform exceptionally well. Unemployment is forecast to decline further to around 2.5 per cent, one of the lowest rates in the European Union. This compares to a projected 6.4 per cent average across the EU. The island’s growing demand for skilled workers, especially in digital services, finance, and hospitality, continues to attract talent and support income growth.

A Decade of Opportunity

Overall, the IMF’s projections portray a bright future for Malta’s economy. Strong growth, balanced trade, low inflation, and full employment set the island apart as a eurozone success story. However, sustaining this momentum will depend on continued investment in innovation, infrastructure, and workforce development.

As Europe contends with slowing growth and economic fragmentation, Malta’s steady expansion and resilience underscore its transformation into one of the bloc’s most dynamic and forward-looking economies, a model for small states navigating an uncertain global landscape.