Malta household income growth slows sharply in 2025 as spending holds steady
Household disposable income per capita grew 4.2% in 2025, down from 11.6% in 2024, as consumption rose 5.2%.
Malta's households saw a sharp deceleration in disposable income growth in 2025, with gross disposable income per capita rising just 4.2% at current prices, compared to 11.6% the previous year, according to the National Statistics Office.
In real terms, which strips out inflation, the increase was 4.5%, down from 7.9% in 2024. The slowdown reflects weaker growth in compensation of employees, net property income, and net social contributions and benefits.
Households' final consumption expenditure reached €10,695 million in 2025, up 5.2% in nominal terms and 5.5% in real terms. That compares with 9.2% nominal growth and 5.6% real growth in 2024.
On a per capita basis, consumption expenditure rose 2.9% in nominal terms and 3.2% in real terms, indicating that households are still spending but at a slower pace.
The NSO noted that slower nominal consumption growth partly reflects developments in Financial Intermediation Services Indirectly Measured (FISIM). The value of FISIM allocated to households declined by €231 million compared to 2024, reducing both the level and growth of final consumption expenditure.
Because FISIM affects both income and consumption, the corresponding effects offset each other, leaving household saving unchanged. The neutral impact means the savings rate was not directly affected by the FISIM adjustment.
Adjusted gross disposable income per capita, which includes social transfers in kind such as free healthcare and education, increased 4.4% in real terms in 2025, down from 8.0% in 2024.
The data, published 90 days after the end of the reference year, is consistent with the GDP figures released in August 2026 and the annual sector accounts published in October 2026. Figures from 2023 onwards are considered provisional.
For Malta's business community, the income slowdown signals a tightening of household purchasing power after two years of strong gains. Consumer-facing sectors may face more cautious spending patterns in 2026, while the stable savings rate offers some buffer against further economic headwinds.