Provisional estimates indicate that the Gross Domestic Product (GDP) for the third quarter of 2025 amounted to €6.3 billion, registering an increase of €343.4 million, or 5.7 percent, when compared to the same quarter of 2024. In volume terms, GDP rose by 3.0 percent.
For the third quarter of 2025, the Gross Domestic Product (GDP) of the Maltese economy registered a positive year-on-year growth rate of 3.0 per cent in volume terms.
The GDP deflator went up by 2.6 percent compared to the same quarter last year. This represents an increase of 0.2 percentage points over the year-on-year rate recorded in the second quarter of 2025.
The Production Approach
The production approach, also called the output approach, measures GDP as the sum of the Gross Value Added (GVA), which is the difference between value of Output and the value of Intermediate consumption, and Taxes less subsidies on products.
During the third quarter of 2025, GVA rose by 2.3 percent in volume terms, when compared to the corresponding quarter of 2024.
The contributions to the GVA growth rate in volume terms of Industry (NACE Sections B to F) and Service activities (NACE Sections G to U) were positive at 0.2 and 2.4 percentage points, respectively. Agriculture and fishing (NACE Section A) contributed negatively by 0.2 percentage points.
The increase in Service activities was mainly driven by the growth rates recorded in the following sectors: Accommodation and food services (12.4 percent), Wholesale and retail trade, repair of motor vehicles and motorcycles (4.9 percent) and Administrative and support services activities (4.5 percent).
The Expenditure Approach
The expenditure approach is another method used to calculate GDP and is derived by adding Final consumption expenditure, Gross capital formation and Exports less Imports.
Domestic demand had a positive contribution of 1.6 percentage points to the year-on-year GDP growth rate in volume terms. External demand also registered a positive contribution of 1.5 percentage points.
In the third quarter of 2025, Final consumption expenditure witnessed an increase of 2.5 per cent in volume terms. This was the result of an increase in the expenditure of Households and General government final consumption expenditure of 3.2 and 0.8 per cent respectively. NPISHs1 decreased by 0.9 percent.
Gross fixed capital formation decreased by 1.4 percent in volume terms.
Exports and imports of goods and services in volume terms both rose by 3.9 and 3.1 percent respectively.
The Income Approach
The third approach to measure economic activity is the income approach, which shows how GDP is distributed among compensation of employees, operating surplus of enterprises and taxes on production and imports net of subsidies.
Compared to the third quarter of 2024, the €343.4 million increase in nominal GDP was the result of a €166.5 million increase in Compensation of employees, a €97.7 million rise in Gross operating surplus and mixed income, and an increase of €79.3 million in Taxes on production and imports less subsidies.
Gross National Income (GNI)
GNI differs from the GDP measure in terms of net compensation receipts, net property income receivable and net taxes receivable on production and imports from abroad.
Considering the effects of income and taxation paid and received by residents to and from the rest of the world, GNI at market prices for the third quarter of 2025 was estimated at €5.7 billion.
