Malta’s business economy grows by 15.6% in 2023

Malta’s non-financial business economy grew by an impressive 15.6 per cent in 2023, driven by strong performances in technology-related industries, tourism, and large enterprises. The latest figures released by the National Statistics Office (NSO) show that the economy generated €13.5 billion in Value Added last year.

The strongest increase in net turnover came from the Mobility, Logistics, and Hospitality Services sector, with revenues rising by €2.7 billion. Technological Solutions, Professional, and Business Support activities followed with a €2 billion increase. These sectors are playing a growing role in Malta’s economy, both in terms of turnover and job creation.

In fact, the Technological Solutions sector recorded the highest increase in Value Added, up by 25.9 per cent compared to the previous year. It also added nearly 2,000 new business units and employed over 6,200 additional workers in 2023, confirming the growing importance of ICT, consultancy, and related services within the economy.

SMEs and micro businesses remain vital

Small and medium-sized enterprises (SMEs) continued to contribute significantly, registering a 7.3 per cent increase in Value Added. Micro-enterprises – those employing fewer than 10 people – saw their Value Added rise by 8.9 per cent. SMEs remain dominant in sectors like construction and retail, highlighting their central role in Malta’s business landscape.

Large enterprises expand operations

Large enterprises also posted strong results, with Value Added rising by 26.4 per cent and turnover growing by 20.7 per cent. These companies employed nearly 67,000 people in 2023 and contributed significantly to wage growth and profitability. However, their investment in tangible non-current assets fell by just over 50 per cent, suggesting some caution in capital spending.

Tourism sustains positive momentum

Tourism-related industries saw continued growth last year, employing 4,046 more people than in 2022. Net turnover and Value Added in this sector increased by €2.35 billion and €96.1 million respectively. Hospitality, transport, and food services remain key contributors to Malta’s economy, benefiting from the steady recovery of global travel.

In terms of location, businesses based in Birkirkara, St Julian’s, and Luqa generated the highest Value Added in 2023. These localities also recorded some of the largest increases in income and investment, underlining their importance as business and commercial centres.