07 January, 2026
The latest economic outlook for Malta issued by PwC reveals a robust performance in the face of moderate global growth projections. According to recent data, Malta’s GDP growth rate stood at 6% in 2024, although decelerating somewhat from 6.8%, and is forecasted to dip below the 4% mark by 2026. This growth is driven by sectors such as real estate, construction, financial services, and the public sector. However, traditionally higher value-added sectors such as professional services, ICT, and arts & entertainment (including i-gaming) have slowed down or even contracted slightly. In fact, official statistics for FY24 at a sectoral level suggest a negative correlation between a sector’s growth rate and that same sector’s output per employee in euro terms.
The latest global projections from the PwC Network suggest that global growth will moderate somewhat, at 2.6% in 2025 and 2026, down from 2.8% in 2024. The US economy is expected to grow at just over 2%, while China’s growth is projected to moderate to around 4.5%. Growth in the eurozone is expected to remain slow, at 1.1% in 2025, picking up marginally to 1.3% as the German economy recovers somewhat. Meanwhile, India’s economy remains robust, with growth expected to be over the 6% mark.
Despite the global moderation, Malta’s economic performance remains above its European peers. Expenditure data for FY24 indicate that this growth was driven by expenditure related more to entertainment & leisure and tourism-related activity, rather than more domestic expenditure. Furthermore, economic sentiment indicators such as The Economic Sentiment Indicator (ESI) suggest
decreasing confidence for the first two months of FY25 after a temporary upturn towards the end of 2024. However, Malta’s real GDP growth is projected to remain higher than that of the Euro Area, although the disparity is expected to narrow over time.
To access the full report, visit here.
Disclaimer: The data presented in this Economic Outlook does not reflect the recent tariffs unveiled by the US government.
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