The Central Bank of Malta’s Quarterly Review found that annual real gross domestic product growth accelerated to 6.4% in the fourth quarter of 2025 from 3.8% in the preceding quarter. Domestic demand and net exports contributed equally, while the output surplus widened. The labor market remained tight, with employment rising 2.9% and vacancies increasing 20.9% from a year earlier, although unemployment edged up to 3.4%. Harmonised inflation rose to 2.5% in December, while inflation excluding energy and food eased to 2.3%. The four-quarter government deficit narrowed to 2.2% of GDP, while public debt was broadly unchanged at 46.4% of GDP. The current account surplus increased to 8.6% of GDP in 2025, supported by stronger net services receipts. Financing conditions became slightly more favorable quarter on quarter, with resident deposits growing 7.5% and credit expanding 8.6% annually in December, including 11.5% growth in loans to non-financial corporations.
Central Bank of Malta2026-05-13
Central Bank of Malta reports 6.4% growth and a narrower fiscal deficit in the fourth quarter of 2025
The Central Bank of Malta reported that annual real GDP growth accelerated to 6.4% in the fourth quarter of 2025, while inflation reached 2.5% and the labor market remained tight. The four-quarter fiscal deficit narrowed to 2.2% of GDP, public debt stood at 46.4% and the current account surplus reached 8.6% of GDP.