While several sectors experienced a moderation in growth, the Central Bank noted that the overall picture remains one of resilience, supported by strong consumer confidence, a robust labour market, healthy tourism activity and relatively stable conditions in the property market.

The Bank’s Business Conditions Index showed that annual growth in business activity during June was slightly below its historical average. However, this was largely attributed to timing effects related to tax revenue rather than a broad-based slowdown in economic performance.

Manufacturing and retail trade both registered slower growth during May, while services production eased in April. Nevertheless, activity in all three sectors remained above their respective long-term averages, suggesting that underlying economic conditions continue to be favourable.

Tourism continued to stand out as one of the strongest performing sectors, recording sustained growth during May and providing continued support to the wider economy.

One of the report’s most encouraging findings was the sharp improvement in consumer sentiment. Confidence among consumers rose significantly during June, reaching levels close to historic highs. At the same time, expectations regarding unemployment declined further, falling below their historical average and reflecting continued optimism about labour market conditions.

The labour market itself remained exceptionally strong. Malta’s unemployment rate stood unchanged at 3.5% in June compared with the previous month, although marginally higher than the exceptionally low level recorded during the same period last year.

Inflationary pressures also continued to ease. Annual inflation based on the Harmonised Index of Consumer Prices (HICP) declined from 2.1% in May to 2.0% in June, placing Malta comfortably below the euro area average, where energy prices continued to exert upward pressure on inflation. Core inflation, which excludes food and energy, stood at 2.2% and likewise remained below the euro area figure.

Meanwhile, the Retail Price Index (RPI) showed inflation easing further to 2.5% during June, reinforcing signs that price pressures are gradually moderating.

The property market continued to display resilience despite mixed signals. On the supply side, approved permits for residential developments increased compared with the same month last year, while commercial building permits declined. Demand indicators presented a mixed picture, with residential promise-of-sale agreements falling year-on-year during June, although final deeds of sale increased, suggesting that completed transactions remain healthy.

On the public finance front, the Consolidated Fund recorded a deficit in May, contrasting with a surplus during the corresponding month in 2025. The Central Bank attributed this primarily to the timing of income tax receipts together with increased capital expenditure by government.

Financial conditions also remained broadly supportive. The annual growth rate of deposits held by Maltese residents accelerated during May, while credit growth remained broadly unchanged from April, indicating continued stability in household and business financing.

Overall, the Central Bank’s latest assessment suggests that while the pace of economic expansion has moderated, Malta’s economy continues to demonstrate solid underlying fundamentals. Strong consumer confidence, resilient employment, easing inflation and sustained tourism activity continue to underpin economic performance, even as certain sectors return to more sustainable growth rates.

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This increase in debt was partially offset by a drop in Foreign Loans (€80.1 million) and in the 62+ Malta Government Savings Bond (€37.8 million). Moreover, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €22.7 million, the NSO said.

By the end of June 2026, the Government’s Consolidated Fund reported a deficit of €463.5 million.

Between January and June 2026, Recurrent Revenue amounted to €4,155.2 million, €681.0 million higher than the figure reported a year earlier. The largest increases were recorded under Income Tax (€287.7 million), Grants (€156.8 million) and Value Added Tax (€137.4 million). On the other hand, lower revenue was recorded under Fees of Office (€13.8 million), Reimbursements (€2.1 million) and Sales – Others (€0.9 million).

Total expenditure by the close of June 2026 stood at €4,618.7 million, €687.1 million higher than the previous year.

During the reference period, Recurrent Expenditure totalled €3,952.9 million, an increase of €506.5 million compared to the €3,446.4 million reported the year prior. The main contributor to this increase was a €262.2 million rise reported under Programmes and Initiatives. Further increases were also recorded under Operational and Maintenance Expenses (€96.3 million), Personal Emoluments (€82.6 million), and Contributions to Government Entities (€65.5 million).

The main developments in the Programmes and Initiatives category involved higher outlays towards Social security benefits (€88.1 million), Medicines and surgical materials (€25.7 million) and EU own resources (€24.4 million).

The interest component of the public debt servicing costs totalled €158.5 million, an increase of €14.6 million when compared to the previous year.

By the end of June 2026, Government’s capital spending amounted to €507.3 million, €165.9 million higher than the comparative period in 2025. Higher outlay was, among others, reported towards the Acquisition of property for public purposes (€49.1 million), Property, Plant and Equipment (€18.6 million) and Road construction and improvements (€15.0 million). The rise in spending was partially offset by drops recorded under the Investments in Physical Assets (Agricultural EU funds) (€5.3 million) and Investment Incentives (€5.1 million).

The difference between total revenue and expenditure resulted in a deficit of €463.5 million being reported in the Government’s Consolidated Fund at the end of June 2026, in comparison to the €457.4 million deficit registered the year prior. This difference mirrors an increase in total Recurrent Revenue (€681.0 million), offset by a higher rise in total expenditure, which consists of Recurrent Expenditure (€506.5 million), Interest (€14.6 million) and Capital Expenditure (€165.9 million).

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Addressing the eighth meeting of the Malta Council for Economic and Social Development, Dalli said the government wanted input from employers, trade unions and civil society on initiatives that could reduce pressure on specific parts of the electricity grid during demand peaks.

She said Engineer Abigail Cutajar had been tasked with meeting MCESD members to present the government’s proposals and discuss measures that could encourage responsible electricity consumption.

Dalli stressed that the discussions would not concern changes to electricity tariffs or higher bills. Instead, they would focus on managing sharp, localised increases in demand when extreme temperatures place particular feeders and substations under pressure.

“The fact that we do not burden people with high bills does not mean that we promote waste,” she said.

The meeting was requested to discuss the electricity supply challenges experienced during the previous week, which Dalli acknowledged had caused concern among residents, businesses and the groups represented within the MCESD.

She said Malta had not followed the approach taken by some other European countries, where restrictions on electricity use had been introduced. However, she said this did not mean that Malta should avoid awareness initiatives encouraging consumers to use electricity responsibly.

Dalli said the government had already carried out public information campaigns but acknowledged that more could be done. She invited MCESD members to submit their own ideas on how consumers could help reduce demand during the most critical periods.

Malta’s electricity demand reached 741 megawatts during the recent period of intense heat, substantially higher than the country’s average demand of around 450MW.

Dalli said electricity demand had increased by 86% when compared with 2014, attributing the rise to extreme temperatures, a growing population and increased activity across homes, offices, hotels, restaurants and the manufacturing industry.

She said the recent pressure on the network had largely been caused by localised demand peaks rather than a nationwide shortage of electricity.

The most significant problems were experienced at low-voltage level, where a number of individual consumers were affected. These faults were concentrated on particular feeders and substations serving specific areas.

Dalli said investment carried out at high- and medium-voltage levels since 2024 had strengthened the system and provided Enemalta with greater flexibility when faults occurred, helping prevent consumers from remaining without electricity for long periods.

However, she acknowledged that the work needed to continue across different localities, particularly at medium- and low-voltage levels.

Three distribution centres are currently under construction and are expected to be completed shortly, while further work is planned in several localities.

Valletta was identified as one of the areas where ageing electricity infrastructure must be replaced. Dalli said carrying out the necessary works in the capital would be particularly sensitive because of its high concentration of residents, offices and commercial establishments.

She said Enemalta had been asked to hold discussions with MCESD members, Infrastructure Malta and the Valletta Local Council to determine how the project could be carried out gradually and with the least possible disruption to the residential and business communities.

Works have also started in Birkirkara, Kalkara and Mellieħa, although Dalli said it was not possible to excavate entire localities simultaneously.

She argued that while the government wanted to accelerate the investment programme, the complexity of works inside residential streets meant that a long-term plan could not simply be completed within two years.

“We cannot dig up the whole country at once,” she said, adding that infrastructure works inevitably created inconvenience for residents and businesses.

Dalli thanked Enemalta employees for their response during the recent difficulties and for their work on the distribution system since 2024.

She also responded to claims questioning whether the promised investment had taken place. The government has asked the National Audit Office to update its previous report, which covered the period up to 2023, and examine the work carried out by Enemalta during the past three years.

The minister said the government was also continuing to strengthen Malta’s electricity supply and generation capacity as demand increased.

She referred to Malta’s transition from heavy fuel oil to liquefied natural gas, the construction of the first electricity interconnector and ongoing work on the second interconnector.

The government is also planning a third interconnector and further renewable energy projects, including offshore wind developments.

Dalli said these investments were necessary to support Malta’s economic growth while ensuring that the country could continue meeting the electricity needs of residents and businesses.

Social Dialogue Minister Keith Azzopardi Tanti, who opened the meeting, said its agenda had been shaped by the issues raised by MCESD members during his meetings with their respective organisations.

He said the meeting demonstrated the council’s importance in representing workers, businesses, civil society and the interests of Gozo.

Azzopardi Tanti said the government believed in dialogue and collaboration and pledged that the concerns raised by MCESD members would be brought forward for discussion at the earliest opportunity.

Dalli said the electricity challenges faced by the country were a national issue requiring cooperation between the government, Enemalta, social partners and consumers.

She said the government would continue investing in the grid but wanted MCESD members to help identify practical measures that could protect essential electricity use and limit pressure on the network during future periods of extreme demand.

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The Social Climate Fund provides significant financial support to EU Member States to finance measures and investments identified in their national Social Climate Plans, ensuring that the clean transition is fair and leaves no one behind. Running from 2026 to 2032, the Fund is expected to mobilise at least €86.7 billion, combining revenues from the new emissions trading system for fuel combustion in buildings, road transport and additional sectors (ETS2) as well as Member States’ contributions (at least 25% of the costs of their plans).

Malta’s plan will help vulnerable households improve the energy efficiency of their homes and renovate apartments in public social housing buildings, the statement said. It will do so through energy-efficiency upgrades, such as roof insulation, and the installation of renewable energy systems, including heat pump water heaters and photovoltaic systems with battery storage.

The plan will also expand sustainable transport options for more than 30,000 vulnerable transport users through door-to-door community transport services. In addition, it will support vulnerable micro-enterprises in transport-dependent sectors by improving access to affordable electric mobility and charging infrastructure, helping them transition to electric vehicles.

From 2026 to 2032, the measures will help to tackle energy poverty in the country and are expected to reduce greenhouse gas (GHG) emissions by 3,500 tonnes of CO₂ equivalent.

The plan was developed in consultation with national stakeholders and the Commission and reflects the needs of the country. The Commission concluded that it adequately addresses the social impacts of extending GHG emissions trading to buildings and road transport under the ETS2.

Malta will be able to request a first payment to the Commission once implementation has started and the initial investment results have been achieved, the statement said.

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Addressing the PN’s delegation, Chamber President William Spiteri Bailey said the business community was looking beyond political criticism and wanted clear solutions to the country’s growing economic and infrastructural challenges.

He said Malta’s credibility depended not only on the government of the day but also on having an Opposition that was prepared to govern.

“When we speak to government, we ask for accountability, implementation and results. When we speak to the Opposition, we ask for vision, preparation and a credible alternative,” Spiteri Bailey said.

He argued that businesses invest in certainty, direction and confidence rather than criticism, before challenging the Opposition to explain what kind of Malta it wanted to lead.

Spiteri Bailey described Malta as being at a crucial moment, saying that while the economy had grown, so too had problems including traffic congestion, energy, infrastructure, pressure on public services, competitiveness, governance and quality of life.

He said these were not isolated issues but symptoms of an economic model that had served Malta well for many years but had now reached its limits.

The Chamber reiterated its long-standing call for Malta to transition from an economy driven by volume to one based on value, moving away from population-led growth towards higher productivity, and competing through quality, innovation and efficiency rather than price alone.

Spiteri Bailey argued that national success should no longer be measured solely by GDP or population growth but also by productivity, competitiveness, quality of life and people’s wellbeing.

He posed a series of questions to the Opposition, asking how it intended to increase productivity, reduce dependence on continuous population growth, attract higher-value investment, strengthen innovation, research, digitalisation and artificial intelligence, and help businesses become more productive and competitive.

He also stressed that competitiveness depended not only on tax policy but also on strong institutions, good governance, efficient public administration, modern infrastructure, reliable energy and a modern education system.

The Chamber President said good governance was not simply a matter of reputation but an economic necessity, arguing that countries with stronger institutions attracted more investment and achieved more sustainable growth.

Referring to the government’s Vision 2050 strategy, Spiteri Bailey said a vision alone was insufficient unless it was translated into concrete plans and action. He pointed to the Chamber’s own policy proposals on productivity, tourism, digitalisation, artificial intelligence and governance as examples of practical contributions to the national debate.

He called for cross-party consensus on issues such as productivity, education, energy, competitiveness, justice, governance and Malta’s international reputation, saying these national priorities should not change with every electoral cycle.

Closing his address, Spiteri Bailey said the Chamber did not engage in partisan politics but in economic policy.

“We are not interested in who wins the election. We are interested in Malta winning,” he said, adding that the country needed long-term leadership willing to take difficult decisions while placing productivity, competitiveness, governance and quality of life at the centre of policymaking.

Replying to the Chamber, Opposition Leader Alex Borg agreed that Malta needed to focus on improving quality of life alongside economic growth.

Borg said the Nationalist Party believed Malta should invest more heavily in energy to reduce dependence on foreign countries.

He also described traffic congestion as having a significant impact on businesses. Borg said this was why the party had proposed introducing a mass transit system during the general election campaign.

The Opposition Leader also highlighted the growing role of artificial intelligence in industry, saying he had visited several businesses that had invested significantly in AI, particularly within the manufacturing sector, helping improve national productivity.

Borg cautioned that headline GDP figures did not necessarily reflect people’s daily lives.

“On paper GDP can look a certain way, but quality of life can look completely different,” he said.

While acknowledging the importance of economic growth, Borg argued that the wellbeing of workers should remain the country’s principal priority.

He added that future development should be guided by a clear long-term plan that reflected today’s realities.

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Speaking during a meeting with the Agriculture Consultative Council at Buskett, Abela said the amendments, approved by Cabinet, would create a fairer system by assessing farmers according to their declared income rather than simply the size of their agricultural holdings.

He said the revised framework would strengthen the legal system introduced last year, improve efficiency and allow the government to provide more tailored assistance to different categories of farmers.

Abela also announced that works on the long-promised Farmers’ Market at Ta’ Qali will begin in September. The project, which forms part of the government’s electoral programme, is intended to provide dedicated facilities for farmers, livestock breeders and fishermen while creating more opportunities for direct sales to consumers.

The market is also expected to give shoppers greater access to fresh local produce at affordable prices.

The Prime Minister said such initiatives would strengthen Malta’s food supply, safeguard the country’s agricultural heritage and protect the rural environment. However, he stressed that the government’s priority remained improving the resilience of the sector and increasing farmers’ incomes.

Abela highlighted a series of reforms introduced in recent years, including changes to agricultural land legislation, the modernisation of the Public Abattoir and reforms at the Pitkalija wholesale market.

He also pointed to the expansion of the New Water system, schemes aimed at improving access to agricultural land, grants to modernise farms and equipment, and financial support to help farmers cope with rising import costs.

As evidence of growth in the sector, Abela said sales of fruit and vegetables through the Pitkalija had increased from €21 million in 2021 to almost €28 million in 2025. He added that further investment was planned, including a new digital system, modern containers and upgraded facilities.

Agriculture Minister Anton Refalo, who also attended the meeting, announced that the government will launch a public awareness campaign in the coming weeks to promote olive cultivation and the production of olives and olive oil.

He said the initiative complements ongoing efforts to secure official Protected Designation of Origin (PDO) status for the endemic Maltese Bidni olive variety and the olive oil produced from it.

Before meeting the Agriculture Consultative Council, Abela visited the Vine Centre at Buskett, where he described viticulture as an important showcase for Maltese agriculture with strong economic potential.

He said the government intends to complete the Wine Museum in Żebbuġ, Gozo, during this legislature and open the Buskett Viticulture Centre to visitors as part of wider plans to develop wine tourism.

Abela said the government’s long-term vision for agriculture is to shift the sector towards higher value-added production through innovation and integrated rural development, while pledging to maintain close dialogue with farmers and their representatives.

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These works are being carried out in parallel with the plant’s detailed engineering and process design, marking a major milestone in one of Malta’s largest waste management investments.

The project represents a total investment of €75 million, including approximately €45 million in co-financing through the European Union Cohesion Fund. The new facility will more than double Malta’s capacity to treat organic waste and further strengthen the country’s transition towards a circular economy. This project is also part of the government’s electoral programme.

Minister for Energy, the Environment and the Regeneration of the Grand Harbour Miriam Dalli, Minister for European Funds Keith Azzopardi Tanti, and WasteServ CEO Richard Bilocca visited the site to view progress on the ongoing works.

“The start of works on this new facility marks another important milestone in a project that will enable us to recover more resources, generate more renewable energy, and continue building a stronger circular economy for Malta,” said Minister Miriam Dalli.

Minister Keith Azzopardi Tanti highlighted the important role of European funding in delivering strategic national infrastructure projects. “Through a €45 million investment co-financed by European funds, WasteServ is implementing a crucial project that will bring our country closer to a circular economy. We are demonstrating in practical terms how European funds can be invested in Malta’s real needs, while treating waste as a valuable resource from which we can generate clean energy and compost.”

Once operational, the new facility will increase annual organic waste treatment capacity from around 36,000 tonnes to more than 74,000 tonnes. As waste separation continues to increase, this additional capacity will enable significantly larger volumes of organic waste to be converted into renewable energy and high-quality compost, while increasing electricity generation from the current 8.5 GWh to up to 20 GWh annually.

The facility will also incorporate advanced technology and higher levels of automation to maximise efficiency, improve operational performance, and further enhance environmental safeguards.

WasteServ CEO Richard Bilocca said the project is progressing according to plan. “Construction has now entered its first phase, with excavation works underway across the site. General excavation is being carried out using specialised surface planer excavators that are specifically suited to the scale of the project while helping to minimise environmental impacts, particularly noise and vibration. In line with WasteServ’s commitment to sustainability, excavated material is also being reused on site to backfill low-lying areas to the required design levels. Works have also started on the construction of the facility’s perimeter retaining wall, while detailed process and engineering designs are currently being finalised.”

The Organic Processing Plant is expected to be completed within two years and will become another key component of the ECOHIVE strategy.

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The Commission published its review of the EU ETS on 17 July, proposing a number of changes aimed at reducing carbon emissions while addressing concerns raised by the shipping industry over the impact of the scheme on European ports.

MMF Chairman Godwin Xerri said the proposed amendments acknowledge several of the concerns raised by the sector but argued that additional changes will be necessary to ensure the EU’s decarbonisation objectives do not come at the expense of Europe’s maritime competitiveness.

Among the proposals welcomed by the Forum is a temporary reduction in EU ETS allowance-surrender obligations for certain container cargo transhipped through EU ports, including Malta Freeport. The measure would apply until the end of 2035 for inbound voyages from non-EU ports undertaken by container ships with a capacity exceeding 10,000 TEUs, where cargo is transferred to another vessel destined for a non-EU port.

While the exemption would not apply to Malta’s import and export cargo, the MMF said it would help reduce the competitive disadvantage faced by European transhipment hubs when compared with nearby non-EU ports that are not subject to the same emissions trading rules.

According to the Forum, Malta Freeport has come under increasing competitive pressure from ports in North Africa, particularly in Egypt and Morocco, which have significantly expanded their infrastructure and capacity in recent years. Several shipping services have already shifted operations away from EU ports, resulting in non-EU hubs capturing the majority of new transhipment business.

The Commission has also proposed tightening the rules governing neighbouring non-EU transhipment ports by lowering the transhipment threshold from 65% to 50% and broadening the criteria used to identify ports that could benefit from avoiding EU ETS costs.

However, the MMF said these changes do not fully address the issue, noting that the rules become ineffective whenever vessels bypass EU ports altogether.

“The proposed changes represent positive progress in addressing business and carbon leakage resulting from the implementation of the Directive,” Xerri said. “However, the review process must continue to ensure the legislation protects both Europe’s environmental ambitions and the competitiveness of its maritime sector.”

The Forum is also calling for permanent exemptions for island member states and other geographically disadvantaged regions, arguing that their dependence on maritime transport places them at a structural disadvantage.

Xerri said Malta’s insularity makes reliable maritime connectivity essential for both consumers and businesses, and that this should be permanently recognised within the EU ETS framework.

The MMF further urged the European Commission to clarify what would happen should the International Maritime Organization (IMO) introduce a global carbon pricing mechanism for shipping. The Forum believes the Commission should commit to withdrawing the regional ETS regime if a global measure is adopted, thereby avoiding overlapping compliance obligations and additional costs for shipping operators.

The Forum also welcomed proposals to earmark EU ETS revenues for the shipping sector through both national funding and the planned Maritime Transport Decarbonisation Fund.

However, it argued that financial support should extend beyond wind-assisted propulsion and shore-side electricity to include a broader range of technologies capable of improving energy efficiency and reducing emissions across all shipping segments, including short-sea, bulk and tramp shipping.

The MMF said it remains committed to working with the Maltese government, European institutions and industry stakeholders to pursue further reforms to the EU ETS Maritime framework, particularly those recognising the unique challenges faced by island states that rely heavily on maritime links for their supply chains.

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Organised by IFSP’s Directors Chapter, IDC Malta, the workshop focused on Strategy and Value Creation, bringing together directors, senior executives and financial services practitioners for a practical discussion on boardroom effectiveness, strategic decision-making and sustainable value creation.

The session forms part of the Boardroom Excellence Workshop Series, a five-part programme designed to elevate governance standards and strengthen boardroom performance in an increasingly complex regulatory and business environment.

Speaking during the workshop, Kenneth Farrugia, Chief Executive Officer at Bank of Valletta, highlighted governance as a strategic capability, particularly in financial services, where trust, accountability and long-term resilience remain central to institutional credibility.

“Strong governance is one of the foundations on which trust in financial services is built,” said Mr Farrugia. “It goes beyond structures, policies and reporting lines. It is reflected in the quality of decisions, the clarity of accountability, and the ability of institutions to create sustainable value while managing risk responsibly.”

Mr Farrugia noted that the sector is being shaped by heightened regulatory expectations, technological change, evolving customer needs and increasing stakeholder scrutiny. In this context, he said, boards and senior leaders must continue to strengthen their judgement, oversight and ability to balance opportunity with responsibility.

“Our collaboration with IFSP reflects BOV’s commitment to supporting the continued development of Malta’s financial services sector,” Mr Farrugia added. “As Malta’s largest financial institution, we have a responsibility to contribute to initiatives that promote professional development, thought leadership and stronger governance capability across the industry.”

The workshop reflects the broader objectives of the strategic agreement between BOV and IFSP, centred on knowledge sharing, professional development and joint initiatives that support Malta’s financial services professionals and organisations.

Through this collaboration, BOV and IFSP are creating practical opportunities for dialogue, learning and engagement on issues shaping the future of the sector, including governance, regulatory readiness, innovation, leadership and long-term competitiveness.

Commenting on the collaboration, Mr Nick Captur, President of IFSP, said: “The relationship between IFSP and BOV reflects the importance of collaboration between professional bodies and leading market institutions. Through the Directors Chapter and the Boardroom Excellence series, we are creating opportunities for directors and senior professionals to engage with governance in a practical, relevant and forward-looking way.”

The Boardroom Excellence Workshop Series combines expert insight, practical case studies and boardroom simulations to support current and aspiring directors and senior executives in strengthening their understanding of board responsibilities and leadership-level decision-making.

BOV and IFSP reaffirmed that continued investment in governance capability, professional standards and sector-wide dialogue remains essential to Malta’s long-term competitiveness as a financial services jurisdiction. Their collaboration will continue to support responsible leadership, regulatory awareness and sustainable value creation.

The post IFSP and BOV strengthen governance dialogue through Boardroom Excellence workshop first appeared on The Malta Business Weekly.

The latest figures show that foreign residents now make up 31% of Malta’s population, with net migration patterns continuing to drive growth. Based on PwC’s demographic modelling, Malta’s population is projected to reach a base case of 636,000 by 2030.

This path puts the country among Europe’s fastest-growing economies by population.

This rapid expansion brings both economic opportunity and important challenges. At its current population level, Malta already ranks as the fourth most densely populated country globally, with a population density of approximately 1,862 people per square kilometre. By 2030, this density is projected to increase to 2,013 people per square kilometre, which will add further pressure on the nation’s finite resources. 

Infrastructure demands require urgent investment

The report highlights clear infrastructure pressures that call for decisive action. Currently, Malta ranks 17th among EU peers on hospital beds per 100,000 residents, with 397 beds compared to the EU average of 511. To simply maintain this relative standing by 2030, Malta would need to add approximately 329 additional hospital beds, meaning a 15% increase. To reach parity with the European average Malta would require nearly 1,054 additional beds, a 48% increase.

Energy infrastructure is also worth considering, given the increasing population. According to the latest data, Malta produced 2,138k MWh of locally generated electricity in 2024, with a net 970k MWh imported to meet total energy demand. Assuming the same level of local energy capacity for a projected population of 636,000, Malta would need to import 1,304k MWh of electricity to maintain current per capita consumption levels, representing a circa 25% increase in imported energy requirement.

While the demographic path presents challenges, it also underscores the urgency of strategic planning. Our projections are based on varying levels of slowdown in current net migration flows. Nonetheless, population is still expected to increase significantly, with the mix of foreign to local residents potentially reaching around 38% by 2030. The key policy change will be ensuring that infrastructure, public services, and long-term planning keep pace with this changing reality.

“Malta’s population growth reflects our economy’s resilience and attractiveness, but it demands proactive planning,” said Lucienne Pace Ross, PwC Malta’s Territory Senior Partner. “The decisions we make today regarding infrastructure investment and resource allocation will fundamentally determine whether this growth improves our quality of life or strains our public systems. We must make sure that our hospitals, energy networks, and essential services scale proportionally with population expansion.”

The full PwC Economic Update offers a detailed update of Malta’s economic performance and sets out demographic projections. To access the complete report and explore detailed insights into Malta’s economic outlook, visit here.

The post Population growth drives urgent infrastructure needs – PwC Malta Summer 2026 Economic Update first appeared on The Malta Business Weekly.