Malta’s Growth Story Highlights The Value Of Economic Resilience In A Slower Europe

Malta has been named Europe's fastest-growing economy over the medium term, according to the International Monetary Fund's (IMF) latest World Economic Outlook. The IMF expects Malta to grow by nearly 4% a year between 2027 and 2031, well ahead of the eurozone average of 1.2% and the wider EU average of 1.4% over the same period.

According to IMF, the eurozone's economic growth rate is expected to stay below normal for the rest of the decade. Global output, by comparison, is forecast to grow by around 3.2% a year over the same period, putting Malta's projected growth rate in good stead by both European and global measures.

The IMF's analysis points to a shift in the drivers of Malta's economy. Over the past decade, the country grew at nearly 7% a year, powered by tourism, online gaming and professional and financial services, with a rapidly expanding labour market. Going forward, IMF said Malta's growth will depend more on productivity gains, supported by stronger public finances and continued investment in infrastructure, education and innovation.

Malta's ranking also places it ahead of several other small economies expected to outperform the eurozone, including Kosovo, Ukraine, Serbia and Moldova, though the drivers behind their growth differ, with several relying on reconstruction spending or EU accession funding rather than an established services base.

The figures suggest Malta's economic performance is underpinned by structural factors rather than short-term momentum alone - a distinction likely to matter as the rest of Europe navigates a slower growth environment.