It is projected to stand at 7.7% by 2024, and drop to pre-2022 levels in 2025. 

Finance Minister Clyde Caruana reiterated that the government has not set a time limit for its interventions in the energy sector and will continue as long as needed. 

The total spend by the government on energy subsidies will soon reach €1 billion. However, European leaders also recently agreed on a joint gas purchase as well as a strategy to mitigate the rise in gas and energy prices, which should help.

Still, the continued expenditure will positively impact the effects of inflation in the country.

While the country’s moving average will still stand at a high 5.7% by the end of 2022, it will still be the second-lowest in the entire EU.

It is expected to continue to drop in the following years but will remain relatively high rate. 

Capital expenditure will also be increasing off the back of the government’s energy spending. However, this will be aided substantially by an increase in EU funds, which will account for roughly a third of total expenditure, up from 20% in 2022. 

In general terms, Malta’s economy has recovered from the pandemic, according to figures. Growth for the end of 2022 is projected to be 11.3% and 7.3% the year after, well above the EU average. 

Meanwhile, it aims to continue reducing the deficit, with debt set to remain at a stable 60% of GDP for the next few years. 

No new taxes or increases have been included in the budget, but Finance Minister Clyde Caruana remains confident in the projections, following a spending review until 2027 which took place over the summer. 

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