Malta GDP Expands at Softer 3.9% in Q1

Malta’s economy expanded by 3.9% year-on-year in the first quarter of 2026, slowing notably from an upwardly revised 6.5% growth rate recorded in the previous quarter. The moderation was mainly driven by softer net trade contributions, as imports increased by 4.9%, outpacing the 5.6% rise in exports. Despite the slowdown, domestic demand remained a key driver of growth, contributing 3.6 percentage points to GDP, lifted by gains in both household consumption (3.8%) and government spending (8.5%). Moreover, investment activity strengthened as gross fixed capital formation increased by 3.6% in Q1.

Malta’s economy expanded by 6.4% year-on-year in the fourth quarter of 2025, accelerating from an upwardly revised 3.8% growth in the previous quarter. This marked the strongest pace of expansion since Q2 2024, primarily driven by domestic demand, which contributed 3.2 percentage points to GDP, supported by increases in both household consumption (3.1%) and government spending (6.3%). External demand also supported economic growth, with exports of goods and services rising by 6.1%, outpacing a 3.9% increase in imports. Moreover, gross fixed capital formation increased by 0.7%.

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.