IMF Commends Malta's Robust Economic Performance

The International Monetary Fund (IMF) has delivered a largely positive assessment of Malta's economy in its latest Article IV country report, praising the country’s strong economic fundamentals and the authorities' sound macroeconomic management. 

The IMF review, completed by the Fund's Executive Board on 4 February, confirmed that Malta continues to outperform the EU average on growth, with GDP expanding by an estimated 3.9 per cent in 2025, underpinned by a resilient services sector, sustained tourism recovery, and continued strength in professional services and gaming. Annual growth has averaged close to 7 per cent over the past decade, placing Malta among the strongest performers in the eurozone. 

Executive Directors commended Malta for enjoying one of the highest growth rates in Europe, with public debt on a sustainable trajectory, a notable endorsement at a time when many European economies are grappling with fiscal pressures and stagnant output. 

On price stability, the IMF noted that inflation has declined to slightly above 2 per cent, closely aligned with the European Central Bank's target. Fiscal consolidation efforts have also kept the budget deficit on a narrowing path, reinforcing investor confidence in Malta's fiscal discipline. 

The financial sector received a strong assessment, with the IMF citing high capital and liquidity buffers alongside low non-performing loans, indicators of a well-capitalised and resilient banking system. 

The report also welcomed substantial improvement in judicial efficiency, a structural reform area that has historically attracted scrutiny. Progress in digitisation, migration strategy, and education were equally recognised as steps toward sustaining high-value growth. 

While the IMF flagged longer-term structural challenges common to small open economies, the overall tone of the assessment affirms Malta’s standing as a credible, well-managed jurisdiction delivering consistent economic results in a challenging global environment. 

The full report can be accessed here.