Finance Minister: Malta's upcoming budget will be responsible and pro-growth

Malta Finance Minister Clyde Caruana has launched Malta's pre-Budget 2026 consultation at a press conference on 12 September, presenting compelling evidence of the country’s exceptional economic performance and positioning Malta as an increasingly attractive destination for international investment.

Malta's 2024 real growth hit 6.8% compared to just 1.1% in the EU and 0.9% in the eurozone. For 2025, projected 4% growth maintains this competitive advantage at three times the EU average of 1.5%, demonstrating sustained momentum that appeals to investors seeking high-growth European markets.

"This is not a coincidence but the fruit of the decisions we took in the past," Caruana emphasised.

Malta's energy policy has transformed the country from having Europe's highest energy costs to the lowest over a period of about 20 years. The €200 million annual subsidy programme has provided businesses with predictable, competitive costs. "For many businesses, those €200 million a year are the difference between staying open or closing," Caruana noted, emphasising Malta's operational cost.

Employment statistics present equally compelling investment fundamentals. Malta achieved the EU's lowest unemployment at 2.5% in June 2025 set against 5.7% EU-wide, with employment rates of 84.1% significantly exceeding the EU average of 75.8%. This indicates robust workforce availability for business expansion.

Malta's fiscal management demonstrates strong fundamentals. The country’s debt-to-GDP ratio stands at 47.2% in 2025 (down from 48.1% the previous year) – well below EU's 81.8% average.

According to Caruana, Malta’s deficit shrank from 4.6% in 2023 to 3.6% the following year, and is projected to fall below 3% by 2026.

Emphasis on digital transformation and tax administration modernisation indicates continued government investment benefiting tech companies and service providers.

Regarding his upcoming budget, the Minister promised another "responsible, fiscally sound, pro-growth, and family-focused" budget, indicating policy continuity that has delivered exceptional performance. “Despite challenges in several sectors,” he said, “This budget will continue to ensure citizens’ well-being grows year after year, while strengthening the country’s foundations in Europe.”

The pre-Budget consultation signals continued commitment to policies delivering this exceptional performance, making Malta an increasingly attractive proposition for international investment and European business expansion.