What question did this study set out to answer?

This analysis examines the drivers of Malta's economic growth and assesses future challenges related to labor force sustainability.

February 8, 2026IMF country report0 citationsOpen Access

Malta

IDInternational Monetary Fund. African Dept.

Key Points

This analysis examines the drivers of Malta's economic growth and assesses future challenges related to labor force sustainability.
Analyzed economic data from the past decade.
Evaluated sectors contributing to growth, including tourism and online gaming.
Considered population density and immigration patterns in relation to economic performance.
Per capita income in Malta nearly doubled since 2013.
Annual growth averaged close to 7 percent, primarily driven by labor-intensive industries.
Projected deceleration in labor force growth due to high population density may limit future economic potential.

Abstract

Malta's economy has grown rapidly over the past decade, with per capita income nearly doubling since 2013. Growth averaged close to 7 percent annually, led by labor-intensive tourism, online gaming, and professional services, and was supported by inflows of foreign workers. Labor-driven growth supported by immigration, is expected to continue in the medium term but slow in the longer term as Malta, an island economy with the highest population density in the EU, cannot sustain further substantial population and labor force growth through immigration. Without adequate policy and structural reform measures, the inevitable deceleration in labor force growth would weigh on potential output and limit actual growth.

问 AI

Bookmark

View Full Paper