The Government has reported that the strong economic growth experienced for 2023 at 7.5%, with real GDP growth for the first half of 2024 of 5.9%. Inflation is estimated to fall to 2.5% in 2024 and 2.1% in 2025. While the deficit is currently higher than the 3% EU threshold, this is expected to decrease to 4.0% in 2024 and continue decreasing to 2.6% by 2027. Notwithstanding this deficit, debt as a percentage of GDP is expected to close at 49.5% in 2024 and 50.1% in 2025.
The Government will continue to subsidise prices of energy fuels, grains, and animal feed. Duty on the transfers inter vivos of company shares and commercial tenements in intra-family donations will continue to be subject to the reduced rate of 1.5% on the real value. The Government intends to continue enacting legislation to continue to increase Malta’s attractiveness in the financial services industry, particularly with respect to family offices, aircraft leasing, Fintech and AI.
(Malta Budget 2025 Highlights. Available at: https://kpmg.com/mt/en/home/insights/2024/10/malta-budget-2025.html)
