Malta Q1 GDP Lowest Since 2022

Malta’s economy expanded 3.0% year-over-year in the third quarter of 2025, following 2.8% growth in Q2 and remaining near its slowest pace in over two years. Household consumption rose 3.2% (up from 3.1% in Q2), driven by spending on restaurants and accommodation, transport, and information and communication services. Net trade contributed 1.5 percentage points to GDP, as exports increased 3.9% while imports grew more slowly at 3.1%. Inventories and valuables added an additional 0.4 percentage points. In contrast, fixed capital formation fell 1.4% (versus a 1.5% rise in Q2), weighed down by reductions in machinery and equipment as well as other buildings and structures. Government spending also slowed sharply, rising just 0.8% compared with 8.0% in the previous quarter.

Malta’s economy expanded by 2.7% year-on-year in the second quarter of 2025, slowing from 3.0% growth in the previous quarter. This marked the weakest pace of expansion since the economic contraction in the fourth quarter of 2020, primarily driven by sharp decelerations in both household consumption (2.2% vs 5.1%) and government spending (2.2% vs 9.8%). On the other hand, gross capital formation accelerated notably, increasing by 3.5% vs 0.8% in the previous quarter. In terms of external trade, imports of goods and services surged by 7.8% vs 3.4%, while exports also gained momentum, rising by 7.1% vs 3.2%.

Malta’s economy grew by 3% year-on-year in the first quarter of 2025, slowing from an upwardly revised 3.1% increase in the previous three-month period. This marked the weakest economic growth since the third quarter of 2022, as both household consumption (0.8% vs. 2.5% in Q4) and government spending (0.6% vs. 2.2%) eased. Conversely, gross fixed capital formation (1.1% vs. -0.8%) rebounded. On the external front, both exports (3.3% vs. 4.1%) and imports (2.8% vs. 4.9%) grew at a slower pace.