Performance of the Economy

Real GDP growth rate of 4.1%

GDP is set to grow by 4.1% in real terms in 2023, driven by net exports. Next year, GDP is set to grow by a further 4.2%, driven by domestic demand.

Inflation for 2023 expected at 5.7%

The 12-month moving average rate of inflation as at September 2023 stood at 6.4% compared to 4.9% as at the same period last year (RPI). For the full year 2023, the inflation rate is expected to be 5.7%, driven by services and food prices. Meanwhile, inflation is expected to decline to 3.7% in 2024, as price growth in food and services is expected to ease.

Government expenditure - €7.2bn

Recurrent expenditure is expected to amount to €6.2bn in 2023 up from €5.8bn in 2022, while capital expenditure is set to amount to €1.1bn this year up from €0.7bn last year.

Government debt - €10bn

Government debt is set to amount to €10bn in 2023 (up from €9bn in 2022) of which €8bn comprise Malta Government Bonds.

Deficit in consolidated fund - €969mn

The deficit in the consolidated fund is set to amount to €969mn in 2023, up from €906mn last year.

Unemployment rate - 2.7%

The unemployment rate is expected to stand at 2.7% in 2023. In August 2023, the monthly unemployment rate also stood at 2.7%, which remains below the EU average rate of 6.4% in the same month.

Participation rate in labour market - 78.8%

The participation rate in the labour market has reached 78.8% during 2023.

Government subsidies - €350mn in 2024

In 2023, the Government spent €300mn on energy and food subsidies to help mitigate the effects of inflation. Meanwhile, in 2024, the Government expects to spend €350mn on such subsidies.

Economy set to amount to €18.9bn

In 2023, Malta’s economic activity is set to amount to €18.9bn, up from €17.2bn in 2022, reflecting a 9.7% nominal growth in GDP.

Government revenue - €6.5bn

Revenue for 2023 is expected to amount to €6.5bn, compared to the €5.8bn collected last year.

Debt to GDP ratio of 52.8% in 2023

Government debt is expected to reach 52.8% of GDP by the end of 2023 and set to increase to 55.3% in 2024, thus remaining below the 60% EU threshold.

Deficit - 5.0%

The deficit for 2023 is expected to amount to around 5.0% of GDP, declining to 4.5% by 2024 and to 3.0% of GDP by 2027.

Interest payments on Government debt - €209mn

Interest payments on Government debt are expected to amount to €209mn in 2023, up from €173mn last year, implying a 21% increase in debt servicing requirements. This reflects not only the increase in the absolute amount of debt, but also in interest rates.

Employment growth - 4.7%

Employment is set to grow by 4.7% in 2023. Total number of persons in employment until the second quarter of 2023 was estimated at 290k.

COLA - €12.81

The weekly cost of living adjustment for 2024 will be €12.81 per week. This adjustment will be granted in full to employees, recipients of social benefits and pensioners and pro rata to students. Pensioners will be granted a further cost of living adjustment of €2.19 per week.

Performance of the Economy

Malta Budget 2024