Malta profile

Demography and Health

Malta is a small island nation with a 2024 population of 574,346, placing it among the smaller countries by population but with a relatively concentrated demographic profile typical of compact Mediterranean states. The birth rate stands at 8.1 per 1,000 people (2023) and the death rate at 7.3 per 1,000 people (2023), suggesting a modest natural increase. Life expectancy at birth is high at 83.5 years (2023), reflecting strong health outcomes and living standards, and placing Malta among the longer-living populations globally (ranked 12). The crude mortality and birth rates, coupled with a positive net migration of 6,323 people in 2024, indicate that migration plays a meaningful role in shaping Malta’s demographic dynamics alongside natural population change. Under-5 mortality is 5.5 per 1,000 live births (2023), which aligns with its high overall health standards. On the health system front, current health expenditure amounts to 9.52% of GDP (2022), and domestically, health expenditure per capita in purchasing power parity terms is 3,859 International USD (2022), signaling substantial public investment in health services. Physician density is 4.28 per 1,000 people (2021), indicating a reasonably capable health workforce to support the population. The poverty headcount ratio at national poverty lines is 16.7% (2021), and the prevalence of undernourishment is 2.5% (2022), painting a picture of relatively strong social conditions with pockets of vulnerability. Malta’s unemployment rate is 3.11% (2023), consistent with a tight labor market that supports high living standards. Net migration, high life expectancy, and robust health indicators collectively reflect a society with strong social welfare structures and favorable health outcomes for its residents, while the demographic impact of migration also informs urban planning and public service provision.

Economy

Malta exhibits a high-income profile, with GDP per capita at current US$ 42,347 (2024) and GDP per capita, PPP (current international US$) at 67,364 (2024), signaling substantial incomes relative to many peers. The economy is highly open, with exports of goods and services equal to 123% of GDP in 2024 and imports at 106% of GDP in 2024, indicating intensive participation in global trade and a reliance on external supply chains while maintaining a strong external position. Inflation is modest at 1.65% (2024), and the current account balance stands at 5.69% of GDP (2024), reflecting a healthy external position supported by trade and services. The labor market is tight, with unemployment at 3.11% (2023). Malta’s social indicators show a relatively lower poverty rate (16.7% of the population in 2021) and low prevalence of undernourishment (2.5% in 2022), which together with high per-capita income suggests a well-distributed standard of living for many residents, albeit with some segments needing targeted support. Foreign direct investment net inflows are exceptionally high at 175% of GDP (2024), underscoring Malta’s attractiveness to foreign capital, likely drawn by its services sector, favorable business climate, and strategic location. The economy also features notable high-technology exports totaling about 1.234 billion USD (2023), indicating a meaningful role for knowledge-intensive activities. However, research and development expenditure remains modest at 0.604% of GDP (2022), signaling significant room to scale innovation and productivity through increased R&D funding. Overall, Malta’s economy combines high income, strong external linkages, and a consumer and services-driven landscape with opportunities for further productivity gains through greater investment in innovation and human capital.

Trade and Investment

Malta stands out for its openness and integration into global trade and investment networks. Exports of goods and services amount to 123% of GDP (2024), while imports are 106% of GDP (2024), illustrating a deeply trade-dependent economy that leverages external markets for growth. Foreign direct investment net inflows are exceptionally large, at 175% of GDP (2024), signaling a strong foreign capital footprint and potential benefits from international capital inflows in finance, manufacturing, logistics, and services. The country also exhibits a notable level of high-technology exports, totaling 1.234 billion USD (2023), reflecting participation in knowledge-intensive activities and diversified export capacity. Patents—residents filing—are relatively modest at 5 applications (2021), which, together with R&D expenditure at 0.604% of GDP (2022), points to a research and innovation system that is active but underfunded relative to global best practices. The regulatory environment supports investment with solid indicators such as regulatory quality at 0.687 and rule of law at 0.702 (2023), although controls on corruption remain a challenge (0.11). Malta’s external orientation is thus characterized by strong trade performance, substantial foreign investment, and a growing but still developing innovation ecosystem that leverages its services-led economy and strategic geographic position.

Governance and Institutions

Malta’s governance landscape shows a mix of strengths and challenges. Political stability and absence of violence/terrorism stands at 0.858 (2023), indicating a stable political environment with low domestic risk. The rule of law and regulatory quality are reasonably strong, at 0.702 and 0.687 respectively (2023), reflecting credible policy frameworks and a robust regulatory regime. Government effectiveness sits at 0.397 (2023), suggesting room for efficiency gains in public administration and service delivery. Control of corruption is relatively low, at 0.11 (2023), highlighting that corruption remains a notable risk factor that could undermine business confidence and public trust if not addressed. Malta consequently presents a governance profile with solid stability and regulatory foundations, but with a clear focus area around transparency and anti-corruption reforms to elevate governance outcomes and strengthen investor confidence. Overall, Malta’s institutions provide a reasonable environment for doing business while underscoring the importance of continued reforms to enhance governance quality and public sector performance.

Infrastructure and Technology

Malta demonstrates strong digital and infrastructural readiness to support an advanced, service-oriented economy. Internet penetration is high, with 92.1% of the population using the internet in 2023, underscoring broad digital connectivity and the potential for a thriving digital economy, e-government, and online services. The Logistics Performance Index for quality of trade and transport-related infrastructure is 3.7 (2022) on a 1–5 scale, with a global rank noted at 9 within the relevant metric, indicating well-developed logistics and transport capabilities for a small island economy reliant on efficient supply chains and maritime connections. Domestic general government health expenditure per capita, in PPP terms, is 3,859 International USD (2022), and physicians per 1,000 people are 4.28 (2021), illustrating a well-supported health infrastructure and a fairly strong healthcare workforce. Research and development expenditure is 0.604% of GDP (2022), signaling underinvestment in R&D relative to many advanced economies, while resident patent applications are 5 (2021), suggesting limited domestic patent activity. High-technology exports of 1.234 billion USD (2023) reflect Malta’s participation in knowledge-intensive activities and global value chains, aided by high internet access and efficient logistics. Overall, Malta’s infrastructure and technology profile combines strong connectivity, capable logistics, and a growing, albeit still maturing, innovation environment that could benefit from greater investment in R&D and intellectual property generation.

Environment and Sustainability

Malta faces environmental challenges that are typical for small island states with limited freshwater resources and energy imports. Renewable energy accounts for 8.6% of total final energy consumption (2021), indicating a reliance on imported fuels and opportunities to expand clean energy generation to improve energy security and reduce imports. Total greenhouse gas emissions per capita are 3.68 t CO2e (2023), reflecting emissions from energy use, transport, and industry appropriate to a service- and tourism-based economy with moderate manufacturing. Water resource management is a critical issue, with freshwater withdrawal at 78.3% of available freshwater resources (2021), signaling high water stress and a heavy dependence on desalination and efficient water-use practices. The convergence of climate vulnerability, water scarcity, and energy import dependence creates a priority for policy measures to accelerate decarbonization, enhance energy efficiency, and expand renewable energy capacity. Malta’s environmental indicators, together with strong social outcomes such as high life expectancy and low poverty, suggest resilience, but also the need for continued investment in sustainable infrastructure, green technology, and water management to ensure long-term environmental and economic sustainability.