Malta’s Economy Grows 3% As Domestic Demand And Trade Drive Boost In First Quarter
Malta’s economy expanded by 3% in real terms during the first quarter of 2025, with strong domestic demand, solid foreign trade, and a rebound in key service sectors contributing to the growth.
Provisional data published by the National Statistics Office on Thursday shows that Gross Domestic Product reached €5.5 billion between January and March, an increase of €283.5 million—equivalent to 5.4% in nominal terms—compared to the same period last year.
Domestic demand alone contributed 2.5 percentage points to the headline figure, while net exports added another 0.5 points. Growth was underpinned by notable gains in professional services (+14.9%), public administration and health (+5.3%), and the financial sector (+6.5%).
While inflationary pressure remains, there are signs of moderation. The GDP deflator, which reflects price level changes across the economy, stood at 2.4%—down from 2.9% in the final quarter of 2024.
Investment also picked up, with gross fixed capital formation rising on the back of higher spending on transport equipment and residential dwellings. Exports grew by 3.3%, outpacing the 2.8% increase in imports.
The labour market continued to expand, with employment growing by 4.2% year-on-year and compensation of employees rising by 8.6%, suggesting wage growth remains strong despite global uncertainties.
All signs point to continued economic resilience as Malta maintains stable momentum heading into mid-2025.
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