Finance Minister celebrates ‘critical milestone’ as Malta set for early exit from Excessive Deficit Procedure

Malta is set to exit the Excessive Deficit Procedure (EDP) two years ahead of schedule after an improvement in its fiscal performance, beating both deficit and debt projections for 2024.

In a statement, the Ministry for Finance said that the Government’s “responsible fiscal management, prudent decision-making, and a strong commitment to good governance” has placed the country on a path of financial sustainability and ensured a stronger-than-expected recovery.

The latest data shows that the national deficit for 2024 was 3.7 per cent, improving by 0.8 percentage points over the budgeted 4.5 per cent. Similarly, the debt-to-GDP ratio fell to 47.4 per cent, significantly lower than the projected 55.3 per cent, 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 per cent to 3.3 per cent, further underlining the Government’s commitment to sound economic governance and fiscal responsibility.

During a press conference on Tuesday (today), Minister for Finance Clyde Caruana stated that “today’s announcement from the National Statistics Office 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, said the Minister.