Malta Set to Remain Fastest-Growing Economy in the EU, Says IMF

Malta is poised to maintain its position as the fastest-growing EU economy for at least another five years, according to the latest International Monetary Fund (IMF) report. The IMF economic outlook projects the Mediterranean nation's GDP to expand by approximately 4% annually through 2030, nearly four times the expected 1.1% average growth rate for the eurozone performance 2025 and beyond.

The IMF report highlights Malta's remarkable economic resilience, with the country having achieved one of Europe's strongest growth rates over the past decade. Between 2014 and 2023, growth averaged 6.75%, the second-highest rate across the continent. This exceptional performance has enabled Malta's GDP per capita to converge with the EU average, positioning the nation among the bloc's top economic performers.

Malta's diversified economy continues to demonstrate robust momentum, driven by thriving services, including finance, gaming, tourism, and technology. The country recorded an impressive current account surplus of approximately 5.5% of GDP in 2024, more than double the European Union average of 2.6%. This figure underscores Malta's competitive export sectors and strong international market position.

The nation's labour market performance remains outstanding, with unemployment forecast to decline to around 2.5%, representing one of the lowest rates in the European Union. This compares favourably to the projected 6.4% EU average, reflecting Malta's growing demand for skilled workers across digital services, finance, and hospitality sectors.

The IMF projects inflation to remain relatively contained, stabilising at approximately 2% by 2030. Malta's continued economic expansion reflects successful policies promoting export-oriented service industries and sustained foreign investment inflows, cementing the island's transformation into one of the eurozone's most dynamic economies and a model for small states navigating the global economic landscape.