Malta’s economy expanded by 2.7% in the second quarter of 2025, according to new figures from the National Statistics Office (NSO). The growth, though positive, marked a slowdown from previous quarters, underlining growing pressures on domestic demand.

The NSO said gross domestic product (GDP) stood at €6.1 billion in nominal terms, with GDP per capita reaching €10,496. Growth in real terms was largely supported by exports of goods and services, which contributed 8.3 percentage points to GDP — significantly higher than the 3.8 points in the previous quarter. Imports also rose, but the net impact still favoured exports.

By contrast, final consumption expenditure slowed sharply, adding just 1.3 percentage points to growth, down from 3.1 points in Q1. Household spending was muted, while government consumption made a negligible contribution. Investment, measured through gross capital formation, added 0.7 points.

On the production side, the services sector remained the main driver, contributing 3.3 percentage points. Industry added 0.3 points, while agriculture showed a slight decline. Taxes less subsidies on products, which had bolstered growth in previous years, subtracted from overall performance this quarter.

In terms of income, compensation of employees continued to rise, contributing 3.8 points to nominal GDP growth. The gross operating surplus and mixed income — essentially business profits — also edged higher.

The figures highlight a two-speed economy: strong export-led performance buoyed by Malta’s role in services and trade, set against softer local consumption.