Malta Central Bank Forecasts Steady 3.7% Economic Growth Through 2028

Malta’s economy is set to continue outstripping its European peers, with the Central Bank of Malta (CBM) latest economic update projecting steady annual real GDP growth of 3.7% between 2026 and 2028. The forecast, roughly three times the eurozone economic outlook, cements Malta’s position as one of Europe’s standout performers and underscores the strength of its diversified economy. 

The projection follows an exceptional 2025 in which the economy expanded by 7%, one of the strongest performances in the euro area. By contrast, both the European Commission and ECB expect eurozone growth of just 1.2% in 2026, rising to 1.4% in 2027.  

Private consumption remains the principal driver of activity, with household spending bolstered by recent adjustments to income tax brackets. Tourism, gaming, and financial and professional services continue to fuel growth, while net exports are expected to stay positive, particularly through the services sector. Professional, IT and financial services are expanding robustly, reinforcing export performance and demonstrating the breadth of Malta's economic base. 

Employment growth is expected to gradually moderate to 2.3% by 2028, with unemployment projected to fall to 2.8%. The inflation outlook is equally stable: harmonised consumer price inflation is forecast at 2.3% in 2026, declining to 2.0% by 2028, providing a sound footing for households and businesses. 

Malta’s prudent fiscal policy continues to attract investor confidence. The country was the highest climber in the 2025 edition of the Greenfield FDI Performance Index while 4 out of 5 foreign investors said in a recent survey that they consider Malta an attractive investment environment.  

Looking forward, the debt-to-GDP ratio is expected to fall to 46.2% by 2028, well below the eurozone average. With sustainable public finances, a tight labour market, and business confidence underpinned by stable macroeconomic fundamentals, Malta's economic forecast tells a compelling story.