Malta economy at a glance

Latest figures for Malta: inflation, growth, interest rates, jobs, bond yields, debt and taxes. Updated 6 November 2026. Open Malta on the interactive map →

Key figures

Indicator	Latest	Period	Previous
Inflation (consumer prices, year on year)	2.3%	October 2026	2.4% September 2026
Real GDP growth (year on year)	5.0%	Q2 2026	4.6% Q1 2026
Policy rate (European Central Bank)	2.50%	November 2026	2.50% October 2026
Unemployment rate	3.4%	September 2026	3.5% August 2026
10-year government bond yield	4.19%	September 2026	3.90% August 2026
Retail sales (year on year)	4.7%	September 2026	−0.8% August 2026
Industrial production (year on year)	5.1%	August 2026	4.0% July 2026
House prices (year on year)	6.9%	Q2 2026	6.8% Q1 2026

Questions and answers

What is the inflation rate in Malta?

Malta's annual inflation rate was 2.3% in October 2026, down from 2.4% in September 2026.

What is the interest rate in Malta?

The European Central Bank deposit facility rate is 2.50% (as of November 2026). The next rate decision is due on 17 December 2026.

How fast is Malta's economy growing?

Malta's real GDP grew 5.0% year on year in Q2 2026. The IMF's October 2026 World Economic Outlook forecasts growth of 4.2% in 2026 and 4.0% in 2027.

What is the unemployment rate in Malta?

Malta's unemployment rate was 3.4% in September 2026, down from 3.5% in August 2026.

What is Malta's 10-year government bond yield?

Malta's 10-year government bond yield averaged 4.19% in September 2026.

How much government debt does Malta have?

Malta's government debt is about 46.3% of GDP (latest annual figure), with a budget deficit of 2.1% of GDP.

What is Malta's credit rating?

Malta's sovereign credit ratings: S&P A-, Moody's A2, Fitch A+.

What is the VAT rate in Malta?

Malta's standard VAT rate is 18% (2026 rules).

What is the corporate tax rate in Malta?

Malta's corporate income tax rate is 35.0% (2026 rules).

Who leads Malta?

Malta is led by Prime Minister Robert Abela (Labour Party), in office since January 2020 and re-elected 30 May 2026; President Myriam Spiteri Debono. Next election: General election due by 2031.

Outlook

Malta should again be the euro area's fastest-growing economy. The 2027 budget assumes growth of 4.1% in 2026 and 3.8% in 2027, close to the IMF (Oct 2026) at 4.2% and 4.0% and above the Central Bank of Malta (Aug 2026) at 3.8% and 3.6%, driven by private consumption, tax cuts and EU-funded public investment. HICP inflation is expected to stay close to 2-2.4% while energy prices remain frozen. The main risks are fiscal: subsidy costs rising with oil (€392m in 2026) and a deficit of 2.6% of GDP in 2026 and 2027, not far below the 3% limit, with debt near 47% of GDP. The CBM also flags upside inflation risks from services and supply disruptions, and the Middle East war threatens tourism and freight. Rating agencies (Fitch, Aug 2026) point to governance and anti-money-laundering credibility and to banks' exposure to property as longer-term vulnerabilities.

Why Malta matters for the world economy

Malta's direct macro footprint is small. Its global relevance comes through specialised services: it is a leading EU base for licensed online gaming, a large flag state and bunkering hub on Mediterranean shipping lanes, and a domicile for funds, aircraft leasing and maintenance. Regulatory decisions there therefore matter for international gaming operators, shipowners and lessors. Its open, tourism-heavy economy (more than 4 million arrivals expected in 2026) is exposed to air-travel demand from the UK, Italy, Germany and France and to fuel costs driven by the Middle East war. The state budget absorbs much of the fuel-cost shock through fixed energy prices. Malta's fast growth and labour imports, including large inflows from South Asia and the Philippines, also make it a notable destination for remittance-linked labour flows.

Politics

Abela called a snap election for 30 May 2026, about ten months early, and won a record fourth straight Labour term with about 51.8% of the vote. The Nationalists under 30-year-old Alex Borg took about 44.7%. The government's economic model rests on fast, labour-import-driven growth and on fixed electricity and fuel prices, which keep inflation near 2% despite the oil shock. Those subsidies, about €400m a year, are now the main fiscal issue. The 2027 budget, presented on 26 October, keeps prices frozen, pays a €1,000 tax-free bonus to workers, raises pensions and family tax thresholds, increases the tourist eco-contribution and curbs some benefits for non-EU workers, while projecting a deficit of 2.6% of GDP. Rating agencies continue to flag governance and anti-corruption weaknesses.

System: Unitary parliamentary republic (euro-area member).

Economy and taxes

GDP: US$28 billion
Population: 0.6 million
Government debt: 46.3% of GDP
Budget balance: −2.1% of GDP
Current account: 8.6% of GDP
Main exports: Services dominate: remote gaming, financial and fund services, tourism, aviation (leasing and maintenance), ICT. Goods: electronic components and machinery, pharmaceuticals, mineral fuels (bunkering and re-exports), printed matter, toys
Top export markets: Germany (16.8%), Japan (7.7%), France (7.6%), Italy (5.5%), Singapore (5.3%)
IMF growth forecast: 4.2% in 2026, 4.0% in 2027
IMF inflation forecast: 2.4% in 2026, 2.2% in 2027
Currency: EUR
Freelancer tax: A self-employed person earning the average wage (EUR 32,868 a year) pays about 24.6% of it in income tax and social contributions (2026 rules)
Top income tax rate: 35.0%
Gold reserves: 0.4 tonnes (September 2026)
Energy self-sufficiency: 1% (2024)

Recent news

4 November 2026 Malta keeps the euro area's lowest inflation rate at 2.3% Eurostat
Eurostat's flash estimate put Malta's annual inflation at 2.3% in October, down from 2.4% in September and the lowest of any euro-area country, while the euro-area average rose to 4.0%.
28 October 2026 Bank of Valletta raises its profit guidance as lending grows MaltaToday
Bank of Valletta made a pre-tax profit of €189.6m in the first nine months of 2026, slightly below last year, but raised its full-year guidance to €230–250m. Net interest income rose 10.6% and gross loans grew 9.9%.
26 October 2026 Malta's 2027 budget adds a €1,000 bonus and keeps energy prices frozen MaltaToday
Finance Minister Clyde Caruana projected a deficit of 2.6% of GDP in 2026 and 2027 and growth of 4.1% and 3.8%. The budget pays a €1,000 tax-free bonus to workers, raises pensions and the tourist eco-contribution, and limits some benefits for non-EU workers.
11 October 2026 Abela pledges an expansionary 2027 budget with tax relief for parents MaltaToday
The prime minister said the 26 October budget will cut income tax for parents again from January, leave VAT and social-security rates unchanged and keep energy and fuel prices frozen. He promised the deficit will stay below 3% of GDP.
30 September 2026 Pre-budget document shows deficit widening to 2.8% on energy support PwC Malta (pre-budget document)
Finance Minister Clyde Caruana's pre-budget outlook projects a 2026 deficit of 2.8% of GDP (from 2.2% in 2025) and growth of about 3.7%. Energy subsidies are expected to cost roughly €400m a year in 2026 and 2027.
14 September 2026 Malta's diesel subsidy bill set to more than double this year Italpress / MNA
Caruana warned that keeping pump prices fixed will cost about €75m for diesel alone in 2026, against an earlier estimate of about €30m. He said there was no end in sight to the pressure.

Headlines and summaries are compiled daily from the linked reports with AI assistance.