## IMF Executive Board Concludes 2025 Article IV Consultation with Malta _IMF News, February 6, 2026_ ## Source details **Canonical URL:** [IMF Executive Board Concludes 2025 Article IV Consultation with Malta](https://www.imf.org/en/news/articles/2026/02/06/pr26034-malta-imf-executive-board-concludes-2025-article-iv-consultation) ## Other formats - [Markdown version](/en/news/articles/2026/02/06/pr26034-malta-imf-executive-board-concludes-2025-article-iv-consultation/index.md) - [Structured JSON version](/en/news/articles/2026/02/06/pr26034-malta-imf-executive-board-concludes-2025-article-iv-consultation/index.json) - [Bundle manifest](/en/news/articles/2026/02/06/pr26034-malta-imf-executive-board-concludes-2025-article-iv-consultation/bundle-manifest.json) ## Bibliographic details - Published: February 6, 2026 --- ### Overview - Malta’s economy maintained robust momentum despite global uncertainties, with growth rates that exceed the EU average, inflation levels near the ECB target, and a sustainable public debt. - Growth is expected to slow to its potential rate of 4 percent due to structural challenges as labor-led expansion, supported by immigration, moderates, and gaming and tourism sectors reach saturation. - Policy priorities focus on further strengthening fiscal buffers for future shocks while creating room for investment in infrastructure, human capital, and innovation. - Long-term growth will depend on reforms that boost productivity and address structural challenges. ### Economic performance and projections - Annual growth averaged nearly 7 percent over the past decade, led by tourism, online gaming, and professional services alongside significant inflows of foreign workers. - GDP growth is estimated at 3.9 percent in 2025. - Inflation declined to slightly above 2 percent. - The labor-driven growth model has strained infrastructure and public services; labor-led expansion is expected to continue in the medium term but slow in the longer term since Malta cannot sustain a continued population increase. - The financial sector remains sound and well-capitalized. ### Executive Board assessment — macroeconomic and fiscal stance - Directors commended sound macroeconomic management and public debt on a sustainable trajectory. - Risks are tilted to the downside; emphasis on transitioning toward a productivity-driven growth path while preserving macroeconomic stability. - Directors welcomed the narrowing fiscal deficit and authorities’ commitment to the EU fiscal framework. - Fiscal consolidation should be sustained to maintain public debt at current levels and create fiscal space for investments in human capital, infrastructure, and innovation. - Scope identified to enhance revenue mobilization, including: - continued digitalization of tax systems, - improvements in VAT administration, - improvements in corporate taxation. - Importance of strengthening public financial and investment management. - Recommendation to gradually phase out untargeted electricity and fuel subsidies while protecting vulnerable groups. ### Financial sector and macroprudential recommendations - Directors noted high capital and liquidity buffers and low non‑performing loans in the banking sector. - Urged vigilance on vulnerabilities from rising exposures to real estate and on the growing role of non‑bank financial institutions, digital finance and crypto‑asset providers. - Welcomed planned expansion of macroprudential measures and encouraged: - continued strengthening of financial sector supervision, - improved data availability, - enhanced stress‑testing. - Encouraged sustained progress in strengthening the AML/CFT framework. ### Structural reforms and long-term growth policy recommendations - Advancing structural reforms is essential to sustain high growth. - Emphasized addressing labor shortages and persistent skills mismatches. - Recommended stepped‑up investment in infrastructure and technology to support higher value‑added activities. - Welcomed authorities’ new migration and education strategies. - Emphasized improving judicial efficiency and sustaining progress in digitalization and innovation. - Welcomed efforts in strengthening energy security and climate resilience and encouraged continued progress toward the green transition. ### Key statistics and projections (selected) - Real GDP (expenditure): 2024 est. 6.8; 2025 proj. 3.9; 2026 proj. 4.0. - Domestic demand: 2024 est. 5.9; 2025 proj. 4.7; 2026 proj. 4.3. - Output gap (% potential output): 2024 est. 1.2; 2025 proj. 0.8; 2026 proj. 0.5; 2027 proj. 0.4. - Gross national savings (% GDP): 2024 est. 26.1; 2025 proj. 25.5; 2026 proj. 24.2. - Investment (% GDP): 2024 est. 19.0; 2025 proj. 19.1. - Consumer prices (HICP, avg): 2024 est. 2.4; 2025 proj. 2.0. - Consumer prices (HICP, eop): 2024 est. 1.8; 2025 proj. 2.2; 2026 proj. 2.1. - Employment (labor % change): 2024 est. 5.6. - Wages (labor % change): 2024 est. 4.5; 2025 proj. 3.8. - Unemployment rate (%): 2024 est. 3.2; 2025 proj. 2.5. - Net migration (% population): 2024 est. 1.7. - Unit labor costs: 2024 est. -0.3; 2025 proj. -0.2. - Credit to the private sector (% change): 2024 est. 6.9; 2025 proj. 5.4; 2026 proj. 5.8. - Credit to the private sector (% GDP): 2024 est. 66.5; 2025 proj. 66.2; 2026 proj. 65.5; 2027 proj. 65.2. - General government net lending/borrowing (% GDP): 2024 est. -3.5; 2025 proj. -3.2; 2026 proj. -2.6. - Structural balance (% potential GDP): 2024 est. -3.6; 2025 proj. -2.8; 2026 proj. -2.7. - Structural primary balance (% potential GDP): 2024 est. -2.5; 2025 proj. -2.3; 2026 proj. -1.6; 2027 proj. -1.5. - Consolidated debt (gross % GDP): 2024 est. 46.2; 2025 proj. 46.9; 2026 proj. 47.1. - Current account (% GDP): 2024 est. 7.1; 2025 proj. 6.3; 2026 proj. 5.2. - International investment position, net: 2024 est. 80; 2025 proj. 83; 2026 proj. 85; 2027 proj. 86. - Gross debt 1/: 2024 est. 301; 2025 proj. 303; 2026 proj. 302. - Net debt 1/: 2024 est. -169; 2025 proj. -178; 2026 proj. -185; 2027 proj. -191. - Nominal GDP (bn €) (MEMORANDUM): 2024 est. 23.1; 2025 proj. 24.6; 2026 proj. 27.7. - Population (1,000) (MEMORANDUM): 2024 est. 553; 2025 proj. 563; 2026 proj. 573; 2027 proj. 584. - GDP per capita ($) (MEMORANDUM): 2024 est. 45,167; 2025 proj. 49,277; 2026 proj. 53,082; 2027 proj. 55,176. *Source: IMF Executive Board Concludes 2025 Article IV Consultation with Malta, February 6, 2026.* --- ## References - [Malta and the IMF](http://www.imf.org/external/country/MLT/index.htm) - [IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance) - [Press Releases](https://www.imf.org/en/news/searchnews) - [PRESS CENTER](http://presscenter.imf.org/) - [http://www.IMF.org/external/np/sec/misc/qualifiers.htm](http://www.imf.org/external/np/sec/misc/qualifiers.htm) - [https://www.imf.org/en/home](https://www.imf.org/en/home) _Source: https://www.imf.org/en/news/articles/2026/02/06/pr26034-malta-imf-executive-board-concludes-2025-article-iv-consultation_