VALLETTA (MALTA) (ITALPRESS/MNA) – Malta is expected to remain the European Union’s fastest-growing economy through 2027, according to the European Commission’s spring economic forecast.

The Commission projects Malta’s economy will expand by 3.7% this year, the highest growth rate among the bloc’s 27 member states, before easing slightly to 3.6% in 2027 after posting 4% growth last year.

The forecast places Malta well above the EU average, estimated at 1.1% in 2026 and 1.4% in 2027.

Brussels credited the country’s strong performance largely to its services sector, particularly tourism, which exceeded expectations in 2025 and is expected to remain resilient despite global geopolitical uncertainty.

Employment is also forecast to grow strongly, rising by 3.9% in 2025, while unemployment is expected to stay low at around 3%, despite a recent uptick.

Inflation is projected to rise slightly to 2.7% in 2026, driven by higher international energy prices, though government subsidies are expected to cushion the impact on households.

Malta’s public finances were also given a positive outlook, with the fiscal deficit forecast to decline from 3.4% in 2024 to 2.2% in 2025 and edge down further to 2.1% by 2027.

The country’s debt-to-GDP ratio is expected to stabilise at around 46%, comfortably within EU limits.

Speaking at a press conference, Economy Minister Silvio Schembri and Finance Minister Clyde Caruana welcomed the forecast as validation of the government’s economic management.

Caruana said the figures strengthened Malta’s case for exiting the EU’s Excessive Deficit Procedure in the coming weeks.

– Photo IPA Agency –
(ITALPRESS).

Source: medNews