Malta’s growth eases in 2025 as productivity slows, PwC Malta’s most recent economic update reveals

PwC Malta’s recently published economic update points to a moderation in growth and a slowdown in productivity in Malta, highlighting important considerations for policymakers and business leaders. The report provides a comprehensive look at Malta’s economic performance in 2025 and the trends shaping the future, while noting that Malta continues to lead in the euro area.

The recent analysis unveiled how Malta’s GDP growth slowed to 4.0% in 2025, down from 6.2% the previous year. Despite this, the country’s growth is still significantly stronger than the euro area’s 1.4% in 2025, which improved from 0.9% in 2024. But the gap between Malta and the euro area is narrowing.

On a per-capita basis, the convergence is more evident. GDP per capita increased by 1.6% and consumption per capita by 1.2% in 2025. This aligns with euro area averages and indicates a shift from exceptional to more moderate growth.

The most notable finding is the slowdown in productivity. Gross value-added (GVA) per worker grew by only 1.4% in 2025, compared to 5% in 2024. With GVA per worker now at approximately €67k, compared with around €83k in the euro area, this slowdown prompts questions about the sustainability of Malta’s long-term growth advantage. The report highlights a structural imbalance: some of the fastest-growing sectors are among the least productive, while higher value-added sectors are underperforming.

• Strong performers: ICT, wholesale and retail, and the public sector.
• Slower growth (below 2%): professional services, finance, construction, and arts & recreation.

Productivity by sector remains uneven, with ICT leading at €162k GVA per worker, followed by professional services (€93k) and finance (€76k). Wholesale and retail, construction, and the public sector are at the lower end of the value-added spectrum. “Our most recent economic update depicts an economy that is resilient yet recalibrating.

Malta continues to outpace its European peers, but the combined effect of slowing headline growth, flattening per-capita indicators, and weaker productivity gains suggests that the drivers of past growth are losing steam. To sustain long-term competitiveness, Malta must focus on improving productivity and supporting higher value-added sectors,” explained Lucienne Pace Ross, Territory Senior Partner at PwC Malta.

Read the full report from here.