Malta's Deficit Lower Than Expected, Surplus Projected by 2029
· Updated
In brief
- Malta's national deficit for 2025 was 2.2% of GDP, lower than the 3.3% initially forecast.
- Finance Minister Clyde Caruana stated that Malta could achieve a financial surplus by 2029.
- These positive economic projections do not account for the potential costs of a metro project.
Malta's financial outlook appears more positive than initially anticipated, with the national deficit for 2025 recorded at 2.2% of the Gross Domestic Product (GDP). This figure is a notable improvement from the 3.3% deficit that was originally forecast.
Finance Minister Clyde Caruana has indicated that the country is on track to achieve a financial surplus by 2029. He highlighted the stronger-than-expected performance of the Maltese economy.
However, Minister Caruana also clarified that these current positive economic projections do not factor in the potential costs associated with a proposed metro project for the island.
According to data from the National Statistics Office (NSO), the General Government registered a deficit of €237.2 million during the final quarter of 2025.
When compared to the corresponding quarter in 2024, total government revenue saw an increase of €311.0 million. Concurrently, total expenditure decreased by €156.4 million, contributing to the improved financial position.
During a recent press conference, Finance Minister Clyde Caruana stated that the government intends to replace existing energy subsidies with a long-term plan for renewable energy. This announcement came as the minister discussed Malta's latest financial performance, including the country's deficit and projections for a future surplus.
The minister indicated that the shift away from subsidies is part of a broader strategy to ensure sustainable energy solutions for the country. While the exact timeline and details of the renewable energy plan were not fully elaborated, the statement signals a significant policy direction for Malta's energy sector.
Finance Minister Clyde Caruana has provided an updated timeline for Malta's financial projections, stating that the government aims to balance its books by 2029 or 2030. This refines earlier statements which had indicated a surplus by 2029.
The Minister also reiterated that Malta's national deficit for 2025 is expected to be below the initially predicted 3.2%. These projections continue to be made without factoring in the potential costs associated with a proposed metro project.
The Spin Room
Low media divide. All outlets reported the Finance Minister's updated projections consistently.
Updates
- : Updated with the Finance Minister's clarification that a financial surplus is now projected by 2029 or 2030.