Malta’s economy expanded by 2.7% year-on-year in the second quarter of 2025, slowing from 3.0% growth in the previous quarter. This marked the weakest pace of expansion since the economic contraction in the fourth quarter of 2020, primarily driven by sharp decelerations in both household consumption (2.2% vs 5.1%) and government spending (2.2% vs 9.8%). On the other hand, gross capital formation accelerated notably, increasing by 3.5% vs 0.8% in the previous quarter. In terms of external trade, imports of goods and services surged by 7.8% vs 3.4%, while exports also gained momentum, rising by 7.1% vs 3.2%.