Malta Leads EU in Migrant Remittances, Nearly 3% of GDP Sent Abroad in 2024

Malta Tops EU in Personal Transfers to Non-EU Countries

New data released by Eurostat indicates that Malta led all European Union member states in 2024 for the proportion of its Gross Domestic Product (GDP) sent abroad in personal transfers to non-EU countries. The figures show that almost 3%, precisely 2.8%, of Malta's GDP was remitted out of the country, reflecting funds sent home by migrants residing on the island.

In 2024, individuals living in Malta transferred a total of €649 million to non-EU countries, while receiving only €8.5 million from outside the EU. This resulted in a substantial deficit of €640.6 million in personal transfers. This amount, relative to the size of its economy, significantly surpasses other EU nations. Cyprus followed Malta, recording a deficit of 0.9% of its GDP in similar transfers.

Understanding the Outflow Trend

Personal transfers, as defined by Eurostat, refer to money exchanged between households, typically encompassing payments sent by migrants living in one country to their families in their home countries. Malta's high outflow figures are largely attributed to its increasing reliance on a growing migrant workforce, many of whom send a considerable portion of their earnings to their countries of origin.

The trend marks a significant shift in Malta's economic landscape. Before 2014, the country's remittance balance was largely stable. However, a decisive move towards labor-intensive growth sectors such as gaming, construction, hospitality, logistics, and care work after 2014 led to an unprecedented increase in inward labor migration and, consequently, outward income flows. Net household income outflows have multiplied sharply since 2022.

Broader EU Context and Economic Implications

Across the entire EU in 2024, households sent a total of €52.1 billion in personal payments to non-EU countries, marking a 6% increase compared to 2023. In contrast, only €14.8 billion in transfers were received from outside the EU. While most EU countries recorded a deficit in their balance of personal transfers, only nine countries registered a surplus, with Croatia leading these with a surplus equivalent to 2.6% of its GDP.

For Malta, the €640.6 million outflow represents a significant portion of locally generated income that is not being spent, saved, or reinvested within the Maltese economy. This phenomenon widens the gap between headline GDP growth and the actual income that remains within the country, highlighting a macroeconomic signal that has become increasingly prominent.