The European Commission's forecast recently issued, poised Malta to be the EU country with the strongest economic growth in 2024.
The island's real GDP is expected to reach 4.0% in 2024 (same growth for the current year) accelerating slightly to 4.2% in 2025. This growth will be well above both closest European members Belgium and Ireland at around 3% and the EU GDP average at around 1.3%, when taking EU projections.
The commission also remarked that the inflation in 2023 is projected to be 5.7%, by decreasing to 3.3% in 2024 and further to 3.1% in 2025.
While remaining at high levels, the government deficit is expected to decrease from 5.7% of GDP in 2022 to 5.1% in 2023 and thereafter to 4.6% in 2024 and 4.1% in 2025.
Looking at the current European scenario, following a robust post-pandemic expansion in 2021 and 2022, the EU economy has lost momentum and the outlook points towards a modest recovery ahead after a challenging year.
Notwithstanding these general adverse conditions, Malta has distinguished itself among EU members and its confirmed economic growth will be able to give fresh impetus in attracting more business on the island.