The economic and political stability of Malta is of particular interest to investors and future residents of Malta from foreign countries. Essentially, despite its relatively small size, Malta has a robust economy primarily based on tourism, manufacturing and financial services. Malta's proximity to Europe, the Middle East and Africa makes it an ideal location for businesses. Therefore, the country has attracted significant foreign investment. In fact, Malta is considered to be one of the most prosperous countries in the Mediterranean region.
Malta has oftentimes been ranked as one of the safest countries in the world. The island country also assures economic stability for non-EU citizens seeking permanent residency. Malta prides itself on business success and quality of life for its citizens.
Moreover, Malta has been a member of the European Union since 2004, with a democratically elected government every five years. The country’s EU membership has helped promote economic stability.
In addition, both the International Monetary Fund (IMF) and the World Economic Forum classified Malta as an advanced and competitive economy in the years before the pandemic. Subsequently, following the conclusion of the 2023 Article IV Consultation with Malta, the IMF stated: "With weaker growth in Europe and waning post-pandemic pent-up demand, staff expect growth to decelerate somewhat but continue to expand by 6¼ percent in 2023 and 5 percent in 2024, among the highest in Europe." It also commended Malta for making an impressive recovery from the pandemic and its "resilience to shocks resulting from Russia’s invasion of Ukraine."
As of October 2023, Malta ranked as the 50th freest economy in the world based on the 2022 Index of Economic Freedom. Moreover, according to the Economy and Finance department of the European Commission, the Maltese economy is progressively experiencing robust growth mainly due to domestic demand and strong exports.
Malta’s Economic Strengths
The country is highly industrialised and service-based, giving business people and workers many opportunities. As a high-income country, according to the World Bank, Malta’s economy has the following strengths:
- Strategic location
- Multilingual population
- Tax-efficient system
- Well-developed finance and ICT cluster
- Fully-developed open market economy
- Productive labour force
Fitch Ratings has re-affirmed Malta’s A+ rating. With its strong geographical position paired and stable GDP growth, Malta has positioned itself as a profitable domain to conduct business even during the global recession.
Political Stability of Malta
Aside from its economic strengths, Malta’s political stability is another factor that brings tourism and investment to the country. Malta scores high in property rights, judicial effectiveness, and government integrity.
Malta ranks 33rd out of 194 countries in terms of political stability, with an index score of 0.91. This score indicates that disorderly transfer of government power, violent demonstrations, social unrest, terrorism, international tensions, and armed, ethnic, religious or regional conflicts are least likely to happen.
Malta also scored strongly in the exercise of political rights. The country’s index score is 2, indicating solid rights pertaining to the electoral process, political participation, and government function.
Malta’s citizens also strongly exercise their civil rights. The island nation’s civil liberties index score is 2. This means that citizens can exercise freedom of expression, belief, and organisational rights, follow the rule of law, and have personal autonomy without any hindrance.
Invest in Your Life through Malta Permanent Residency
Malta helps non-EU/EEA/Swiss nationals to move into the country through the Malta Permanent Residency Programme (MPRP). The MPRP allows you to invest in Malta and become a permanent resident.
You and your family can maximise lifetime benefits, including visa-free movement in the Schengen zone for 90 days out of 180, visa-free travel to multiple countries, and real estate and business opportunities.
