Malta’s non-financial business economy achieved significant growth in 2023, expanding by 15.6 per cent compared to the previous year, according to the latest figures released by the National Statistics Office (NSO).

The total Value Added – a key indicator of economic performance – reached €13.5 billion, with the strongest contributions coming from technological industries, tourism-related activities, and large enterprises.

The largest rise in turnover was recorded in Mobility, Logistics, and Hospitality Services, which saw revenues increase by €2.7 billion. This was closely followed by the Technological Solutions, Professional, and Business Support domain, which expanded by €2 billion. These sectors continue to underpin Malta’s diversification strategy, offering opportunities for investors in tourism infrastructure, digital technologies, and professional services.

Particularly notable is the Technological Solutions sector, which posted a 25.9 per cent increase in Value Added – the highest among all industries. The sector also saw a sharp rise in business units (+1,925) and new jobs (+6,201), demonstrating the island’s growing appeal as a hub for technology, consultancy, and digital services.

SMEs and micro enterprises remain key contributors

Small and medium-sized enterprises (SMEs) remain vital to Malta’s economy, recording a 7.3 per cent increase in Value Added over 2022. Micro-enterprises – firms with fewer than 10 employees – grew by 8.9 per cent in terms of Value Added, highlighting their agility and resilience. These businesses dominate several sectors, including construction and trade, presenting a dynamic landscape for small-scale investors and entrepreneurs.

Large enterprises drive Malta’s industrial output

Large enterprises also made a remarkable impact, with a 26.4 per cent increase in Value Added, supported by a 20.7 per cent surge in turnover. These businesses employed nearly 67,000 people and contributed significantly to profits and wages across Malta. However, their investment in tangible assets declined by 50.8 per cent, indicating a more cautious approach to capital expenditure.

Tourism

Tourism-related industries maintained their momentum, employing an additional 4,046 people in 2023. The sector registered an increase of €2.35 billion in turnover and €96.1 million in Value Added. Hospitality, transport, and food services remain pivotal sectors for Malta’s economy, reinforcing the island’s status as a Mediterranean tourism hotspot.

Business hotspots

Geographically, the localities of Birkirkara, St Julian’s, and Luqa emerged as the top-performing areas in terms of Value Added and investment activity. These regions are home to a mix of corporate headquarters, transport hubs, and hospitality outlets, making them attractive zones for both domestic and foreign investment.