Malta’s free market economy, which is the smallest economy in the euro zone relies heavily on trade in both goods and services, principally with Europe. Malta produces less than a quarter of its food needs, has limited fresh water supplies, and has few domestic energy sources. the economy is dependent on the human resources and foreign trade. Malta’s economy is practically driven by financial services, tourism, real estate, I gaming and manufacturing, particularly of electronics. Other significant sectors are pharmaceuticals, information technology, and call centers. Malta joined the European Union in 2004 and adopted the euro on 1 January 2008. Malta has weathered the euro-zone crisis better than most EU Member States due to a low debt-to-GDP ratio and financially sound banking sector. It maintains one of the lowest unemployment rates in Europe, and growth has fully recovered since the 2009 recession. In 2014 through 2016, Malta led the Eurozone in growth, expanding more than 4.5% per year. Malta’s services sector continues to develop, with sustained growth in the financial services and online gaming sectors. Malta’s GDP growth remains strong and is supported by a strong labour market. The government has implemented new programs, including free childcare, to encourage increased labour participation. Malta managed to maintain a relatively low unemployment rate, mainly because of the constant growth and by policies encouraging continuous training for the labour force.

The Gross Domestic Product (GDP) in 2016 amounted to €9,927.0 million, an increase of €660.5 million or 6.7 per cent when compared to 2015. Economic growth, in terms of real Gross Domestic Product (GDP), stood at 5.0 per cent in 2016, on the back of strong growth rates of 8.3 per cent and 7.4 per cent recorded in 2014 and 2015, respectively. Economic growth has been mainly underpinned by increases in exports, supported by strong domestic demand and dynamic investment activity.