Two-thirds of local CEOs expect little or no impact from US tariffs, business advisory firm PwC Malta said on Wednesday.

It said that according to its latest CEO Confidence Tracker, two-thirds of CEOs expect little to no impact from tariffs being imposed on exports to the US.

“This measured response reflects Malta’s limited direct trade exposure to the US, which accounts for just 3–5% of international activity,” the firm said.

US President Donald Trump has threatened a 30-percent levy on European goods if the transatlantic allies fail to reach a tariffs agreement by August 1.

The survey, which was conducted in June, covered over 50 CEOs across major industries.

It also revealed that business performance had improved significantly over the previous quarter, reaching one of its highest levels it began tracking sentiment in 2021.

“This aligns with national economic indicators, such as the Central Bank of Malta’s Business Conditions Index, which shows a modest rise above the historical average.”

Looking ahead, PwC said most CEOs share a cautiously optimistic six-month outlook, underpinned by solid fundamentals: projected GDP growth above the euro area average, stable unemployment at 2.8%, and increasing building permits, an important signal of future investment.

PwC also reported that according to its latest Economic Outlook, Malta’s economy is expected to grow by 4.1% in 2025, outpacing the euro area’s forecast of 0.9%. While this marks a slowdown from the post-pandemic rebound, Malta remains among the most resilient economies in the EU, the report says.

The report points to a mixed economic picture. Externally-oriented sectors like financial services and ICT are driving growth, while construction, real estate and manufacturing are showing signs of contraction, it says.

Consumption growth is becoming more selective, with categories like hospitality, education, and communication remaining strong, but broader household spending is showing signs of softening.

While Malta’s resilience stands out, the data also flags a slowdown in private consumption per capita and a dip in economic sentiment entering mid-2025.

“These indicators suggest that while the country remains ahead of the curve, the pace of growth is beginning to ease,” the report says.