Feeling crowded in Malta already? The situation might become even worse over the next few years, unless the island reinvents its economic model.

According to Finance Minister Clyde Caruana, our little island will need to welcome around 800,000 residents in the next 17 years in order to sustain our current economic growth rate of 4.2%.

But fear not – it can all be avoided, as long as a fresh economic model is found that can navigate the challenges the island faces while reducing demand for so much manpower.

“We don’t just need to rethink and reform, we need to reinvent ourselves. We need structural change, not mere reform,” said Caruana during the recent Malta Institute of Accountants’ biennial conference, titled ‘Rethink and Reform’, Times of Malta reported. 

Caruana is advocating for more than just minor tweaks and adjustments.

He believes that a complete overhaul of our economic structure is necessary for the island to remain competitive. It’s time for Malta to reinvent itself, to introduce a new model that generates greater value with fewer resources and reduces strain on infrastructure.

Otherwise, it will need to continue to find new ways to maintain the current system, which many would argue is seriously flawed.

As of the latest census, our population stands at just under 520,000. Caruana’s ambitious prediction would mean a whopping 55% increase in the number of people residing on our shores.

Over the past years, we’ve already witnessed a 25% population growth, partly due to the influx of foreign workers who have contributed to the prosperity of our economy.