IDEAS home Printed from https://ideas.repec.org/p/imf/imfscr/2026-029.html

Malta: 2025 Article IV Consultation-Press Release; and Staff Report

Author

Listed:
  • International Monetary Fund

Abstract

The 2025 Article IV Consultation highlights that Malta’s economy has expanded rapidly over the past decade, with per capita income nearly doubling since 2013, supported by strong growth in tourism, online gaming, and professional services, alongside large inflows of foreign workers. This labor‑driven growth model is expected to continue in the medium term but will gradually slow as Malta’s high population density limits further expansion of the labor force through immigration. Without timely policy and structural reforms, this demographic constraint would weigh on potential output. The key policy priority is to preserve macroeconomic stability while transitioning toward a productivity‑driven growth model. This requires a medium‑term fiscal strategy that balances deficit reduction with targeted, pro‑growth investment, supported by improved value-added tax efficiency, stronger revenue administration, phased withdrawal of untargeted energy subsidies, and enhanced public investment management. Continued financial sector vigilance, strengthened supervisory frameworks, and broad structural reforms—especially in labor markets, innovation, judicial efficiency, and climate resilience—are essential to sustain long‑term growth and resilience. .

Suggested Citation

  • International Monetary Fund, 2026. "Malta: 2025 Article IV Consultation-Press Release; and Staff Report," IMF Staff Country Reports 2026/029, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2026/029
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=573741
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfscr:2026/029. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.