Fiscal Council urges shift towards productivity-led growth
The Malta Fiscal Advisory Council (MFAC) has endorsed the government’s latest economic forecasts while warning that Malta must gradually move away from a growth model driven by population increases and labour force expansion.The council described the government’s projected economic growth of 3.7% for 2026 as strong by European standards, noting that domestic demand, private investment, a resilient labour market and rising household incomes are expected to remain key drivers of economic activity. However, the MFAC cautioned that continued reliance on workforce growth and inward migration is placing increasing strain on infrastructure and public services. It highlighted growing pressures on roads, housing, healthcare and other essential sectors as Malta’s population continues to expand. The Council also ncalled for a stronger focus on productivity and long-term competitiveness. It urged government to prioritise investment in education, digitalisation, research and innovation, skills development and infrastructure, arguing that these areas will be essential if Malta is to sustain economic growth while easing pressure on public services.
Malta among EU’s slowest courts despite high spending
Malta continues to rank among the weakest performers in Europe for court efficiency despite spending heavily on its justice system, according to the 2026 EU Justice Scoreboard. The report found that Malta allocates one of the highest levels of public expenditure on courts per inhabitant among EU member states. Nevertheless, the country remains burdened by lengthy delays and significant case backlogs. Administrative cases are a particular concern. Malta recorded the longest average resolution time in the EU, with first-instance proceedings taking around 1,600 days in 2024. By comparison, Sweden resolved similar cases in less than 100 days. Civil and commercial disputes also remain slow, taking roughly 500 days on average to conclude. The report further highlighted challenges in the criminal justice sector, with Malta among only three countries where money laundering cases take more than three years on average to be resolved. Despite these shortcomings, the report praised Malta’s legal aid framework, noting that eligible citizens can benefit from full coverage of litigation costs in certain consumer-related cases. (Maltatoday)
PwC flags productivity slowdown as Malta’s growth moderates
Malta’s economy continued to outperform the euro area in 2025, but signs of slower growth and weakening productivity are raising questions about the sustainability of its long-term economic advantage, according to PwC Malta. The firm’s latest economic update shows Malta’s GDP expanded by 4.0% in 2025, down from 6.2% the previous year. At the same time, euro area growth strengthened from 0.9% to 1.4%, narrowing the gap between Malta and its European peers. PwC noted that expenditure growth was strongest in sectors such as restaurants and hotels, education, information technology, recreation and healthcare. However, growth in spending on food, beverages and personal care was more subdued. The report’s main concern was productivity. Gross value added per worker increased by just 1.4% in 2025, compared with 5% a year earlier. Productivity now stands at around €67,000 per worker, significantly below the euro area average of €83,000. PwC said the figures point to a structural imbalance in the economy, with some of the fastest-growing sectors also being among the least productive. Meanwhile, higher value-added industries are underperforming.
