Malta’s economy expanded by 3.9% year-on-year in the first quarter of 2026, slowing notably from an upwardly revised 6.5% growth rate recorded in the previous quarter. The moderation was mainly driven by softer net trade contributions, as imports increased by 4.9%, outpacing the 5.6% rise in exports. Despite the slowdown, domestic demand remained a key driver of growth, contributing 3.6 percentage points to GDP, lifted by gains in both household consumption (3.8%) and government spending (8.5%). Moreover, investment activity strengthened as gross fixed capital formation increased by 3.6% in Q1.