Malta remains one of the fastest-growing economies in Europe, aided by a rapid expansion of export-oriented services, favorable labor market dynamics, and prudent policies, which advanced structural reforms and strengthened private and public sectors’ balance sheets. At the same time, robust growth, along with the continued influx of foreign workers, has led to increased infrastructure needs and contributed to higher housing prices. The June snap election, which resulted in the Labor Party maintaining a comfortable majority in Parliament, provides a strong mandate for the government to pursue its reform strategy.
Main policy recommendations: Policies should focus on sustaining the strong
performance, enhancing the economy’s resilience, and making growth more inclusive.
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