The US is running ahead of Europe in terms of prosperity, but Malta is growing even faster and expected to keep doing so. “Malta is expanding its economy with knowledge intensive jobs, and this explains why the country is expected to continue leading the European growth league,” explains Dr Nima Sanandaji, director of ECEPR think tank.
In 2024, the economy of the US grew by 2.8 per cent, compared to merely 0.8 in the Euro area. In 2025 the gap will reduce somewhat, but the US is still expected to grow its economy by a percentage point more than the Euro area. Even in 2029, the economy of the US is still expected to grow at 2.1 per cent compared to 1.2 per cent in the Euro nations.
Yet while the big economies of Europe are stagnating, several of the smaller ones are outpacing the US. Malta is the best example, since it led the European growth league in 2024 with a five per cent growth. In 2029 much of global growth is expected to stagnate, with Malta expected to grow its economy with 3.5 per cent, according to World Economic Outlook estimates. This would still make Malta the European growth leader, with a stronger expansion of economic activity than the US.
Malta is succeeding thanks to competitive taxes and regulations, combined with talent supply, which make it a growing brain business jobs hub. Brain business jobs is a term for advanced roles in technology, IT, services, and the creative sector. The geography of Europe’s brain business jobs index, published by ECEPR and supported by Nordic Capital, measures the share of the working-age population employed in knowledge-intensive companies across 33 countries and 244 regions in Europe.
The share of adults employed in these jobs has increased substantially over time. Currently 9.5 per cent of adults in Malta are employed in highly knowledge intensive jobs. After Switzerland, Ireland and the Netherlands, this is the highest rate in Europe.
A comparison of the Mediterranean region shows that those countries that have a lead in brain business jobs as share of the population, also tend to be those that are able to long-term grow the economic activity same or more than the US. Large economies like Greece, Spain, Italy and France have due to regulatory and tax burdens stagnation in share of adults in knowledge intensive jobs. The same countries also struggle with economic growth and job creation.
Klas Tikkanen, COO of Nordic Capital Advisors, comments: “For several years, we’ve observed a trend in Europe where countries with the fastest growth in brain business jobs tend to have lower tax levels relative to GDP. In fact, over a third of the variation in growth rates for these knowledge-intensive jobs can be attributed to tax differences. Understanding this trend is essential, as competitive tax policies are a crucial factor in driving the growth of knowledge-based jobs.”
High-tech manufacturing – a particular strength for Malta
Malta has attracted high-tech manufacturing, with focus on technologies such as semiconductors. More than 2 400 are employed in high-tech manufacturing in the Maltese islands. Malta also has strengths in advertising and market research, where close to 2 900 are employed
Strong link to regional employment
The index compares European regions based on the share of adults employed in brain business jobs. In regions where one per centage point more of the population is employed in knowledge-intensive jobs, the average unemployment rate is 0.27 per cent lower compared to the typical European region.
Ireland, the Netherlands, and Malta rise rapidly in the index
Europe is increasingly becoming an integrated knowledge economy, with jobs shifting to countries that offer strong competitiveness. This year’s index highlights rapid growth in Ireland, the Netherlands, and Malta, all of which combine competitive tax policies with business-friendly regulations.
Six of the top ten brain business jobs regions are in Eastern Europe
Two regions are in Western Europe, one in the Nordics, and one in Southern Europe. Budapest remains the European region with the highest proportion of adults – 25 per cent – employed in brain business jobs. It is followed by Bratislava (23.1 per cent), Prague (21.8 per cent), Bucharest (20.7 per cent), and Paris (18.3 per cent). The Walloon Brabant region, south of Brussels, ranks sixth, followed by Copenhagen, Upper Bavaria, Zagreb, Warsaw, and Vilnius.
Brain business jobs are occupations in knowledge-intensive industries. The report is available on ECEPR’s website here.
