From those in the know: Malta’s economic outlook for 2025

As 2025 begins, Malta’s economy remains a complex balance of growth and
cautious anticipation. Bolstered by resilience in tourism, financial services and
emerging tech industries, Malta’s post-pandemic recovery remains strong, with
forecasts indicating continued steady growth.

Yet, business sentiment among Malta’s CEOs and business leaders remains
divided, with rising inflation, global interest rate adjustments and geopolitical
tensions weighing heavily on future strategies. That said, while Malta’s
economy does indeed face challenges – from potential disruptions in
international trade and imported goods and energy to ongoing labour shortages
– opportunities abound that hold promise for buoying the local economy through
the year ahead.

Key sectors such as sustainable tourism, FinTech and digital transformation
present avenues for growth, as they address global trends including green
technologies and the rise of Artificial Intelligence (AI). Leaders in the tourism
industry focus on sustainability to attract high-value visitors, while the financial
sector is poised for further expansion, driven by Malta’s strong regulatory
environment despite challenges in talent acquisition.

The push for green and digital transformation is also accelerating across the
local landscape, with businesses prioritising innovation in energy and
technology to stay competitive. Meanwhile, Malta faces ongoing workforce
challenges, particularly skills shortages and high labour costs, which continue
to impact its long-term competitiveness. Investment in STEM education,
training programmes and housing affordability reforms will be crucial in the
coming year to attract and retain top talent.

As global uncertainties loom, Malta’s ability to adapt and innovate will be as
pivotal as ever in shaping its economic trajectory, ensuring that the nation not
only sustains its growth but also enhances the well-being of its businesses and
citizens.

In this upcoming series, some of the country’s most influential financial and
business leaders weigh in on Malta’s economic outlook for 2025, sharing both
their high-level economic forecasts and practical business insights to explore
how they are preparing to navigate the economic opportunities and challenges
ahead.

Over the coming weeks, we will share the insights of Gordon Cordina –
Chairman, Bank of Valletta; Marthese Portelli – CEO, The Malta Chamber; Paul
Mifsud – CEO, Sparkasse Bank; Tony Zahra – President, Malta Hotels and
Restaurants Association (MHRA), Stephanie Fabri – Economist; and Marcel 
Cassar – CEO, APS Bank plc.

First published as part of a wider feature first carried on MaltaCEOs 2025 print publication, the sister brand to MaltaCEOs.mt.