PRESS RELEASE BY THE MINISTRY FOR FINANCE Malta to exit Excessive Deficit Procedure ahead of schedule, as fiscal targets exceed expectations

The Ministry for Finance welcomes the latest figures published by the National Statistics Office (NSO), which confirm that Malta has registered a significant improvement in its fiscal performance, beating both deficit and debt projections for 2024.

Thanks to responsible fiscal management, prudent decision-making, and a strong commitment to good governance, the Maltese Government has placed the country on a path of financial sustainability and ensured a stronger-than-expected recovery. Malta is now set to exit the Excessive Deficit Procedure (EDP) two years ahead of schedule.

The latest data shows that the national deficit for 2024 was 3.7%, improving by 0.8 percentage points over the budgeted 4.5%. Similarly, the debt-to-GDP ratio fell to 47.4%, significantly lower than the projected 55.3%, marking a sharp 7.9 percentage point improvement.

In light of the positive trends registered during the first months of this year, the deficit forecast for 2025 is now being revised from 3.5% to 3.3%, further underlining the Government's commitment to sound economic governance and fiscal responsibility.

During a press conference on Tuesday, Minister for Finance Clyde Caruana stated that “today's announcement from the NSO reaffirms the effectiveness of this Government's economic strategy. We remained focused on reducing the deficit without compromising the country's growth momentum or social well-being. Thanks to targeted measures and sound governance, we have not only met our fiscal targets but surpassed them, allowing us to implement impactful budget measures that benefit the Maltese citizens".

The early exit from the EDP represents a critical milestone in Malta's economic trajectory and sends a clear signal of stability, discipline, and resilience.

The Ministry remains committed to fiscal sustainability and to investing in the well-being of the Maltese and Gozitan people.