Malta’s debt-to-GDP ratio is forecast to peak at 50.1% in 2025, reflecting a substantial increase in government debt, which is projected to rise from €9.8bn in 2023 to €11.1bn in 2024 and further increase to €12.0bn in 2025. By 2027, total government debt is expected to reach €13.5bn. This increase in debt highlights the government’s ongoing financial commitments, including investments in infrastructure, public services, and social programs, which are crucial for driving economic growth and development.
Despite this rising debt, it is important to note that it is anticipated to be matched by forecasted GDP growth, which is projected to increase from €20.7bn in 2023 to €27.4bn by 2027. This significant economic expansion implies that while debt levels are high in absolute terms, the growing economy can help absorb the impact of this debt.