Malta’s current account surplus narrowed in the second quarter of 2025, with the National Statistics Office reporting a balance of €516.9 million compared to €596.2 million a year earlier.

The surplus was once again driven by services, which recorded a net positive balance of €2.09 billion, up from €1.99 billion in Q2 2024. Travel, transport and other service exports continued to underpin Malta’s external position, reflecting strong demand from foreign markets.

This performance was partly offset by deficits in other components. The goods account registered a shortfall of €966.7 million, while primary income – which captures earnings on investment and compensation of employees – showed a deficit of €604.1 million. Secondary income, which includes transfers, posted a smaller deficit of €3.5 million.

The capital account recorded a positive balance of €52.6 million, though this was €47.6 million lower than in the same period last year. Meanwhile, the financial account registered a net balance of €660.5 million, an increase of €79.5 million compared to Q2 2024.

The financial position was supported by a rise of €3.6 billion in net assets in other investment. This was partially offset by declines in portfolio investment (€2.0 billion), direct investment (€792.3 million), and financial derivatives (€138 million). Reserve assets increased by €18.9 million during the quarter.

The data also show a divergence between Malta’s position with the EU and the rest of the world. The balance of payments with EU countries slipped into deficit, amounting to €1.13 billion, while Malta’s surplus with non-EU partners rose to €2.77 billion.

Overall, the figures point to a continued reliance on services to maintain a positive external balance, even as higher goods imports and income outflows weigh on the accounts.