Salient Points
- The net lending of the national economy compared to the rest of the world stood at €1,778 million in 2025, compared with net borrowing of €221 million in 2024.
- Gross national income reached €21,730 million in 2025 and the gross national disposable income stood at €21,299 million.
- The savings rate of households is estimated at 19.2 per cent of their gross disposable income in 2025, compared to 18.2 per cent in 2024.
- Value added at basic prices increased by 6.0 per cent in nominal terms in 2025. Growth was mainly driven by non-financial corporations, whose value added rose by 7.6 per cent and contributed 4.7 percentage points to the overall increase.
Commentary
The GDP estimates have been revised in line with the regular revision cycle, mainly reflecting the integration of the 2021 and 2022 Supply and Use Tables, partial results from the 2024 Structural Business Statistics survey, updated administrative data, recommendations from GNI and EDP verification processes, and an enhanced FISIM deflator methodology. More information available in the press information notice published on 17 August 2026.
Sectoral Non-Financial Accounts: 2025
In 2025, the economy moved from a net borrowing position of €221 million in 2024 to a net lending position of €1,778 million in 2025, representing an improvement of €1,999 million. The transition from net borrowing in 2024 to strong net lending in 2025 was primarily driven by:
• A larger surplus in trade in goods and services (+€510 million);
• A significant reduction in the deficit on primary and secondary income (+€1,438 million); and
• Higher net capital transfers receivable (+€58 million).
These improvements resulted in a positive change in net worth due to saving and capital transfers of €1,885 million and ultimately led to a net lending position of €1,778 million in 2025, indicating that the national economy became a net provider of financial resources to the rest of the world.
The improvement in the economy’s net lending position is driven primarily by:
• The turnaround in the financial corporations sector (+€1,315 million);
• Higher household net lending (+€372 million); and
• A reduction in government net borrowing (+€309 million).
These positive developments more than offset the deterioration recorded in the non-financial corporations’ sector (-€35 million). As a result, the total economy moved from being a net borrower vis-à-vis the Rest of the World (RoW) in 2024 to a net lender in 2025.
The balancing items derived from the full sequence of non-financial accounts of the national economy are presented in Table 1.
A more detailed representation of the national economy is available in Table 2 while a detailed breakdown of the RoW is available in Table 9.
Table 1 presents the contribution of each institutional sector to the net lending and net borrowing.
Dynamics in economic growth
In 2025, the value added at basic prices generated by the national economy increased by 6.0 per cent in nominal terms compared to the previous year.
Positive developments were recorded across most institutional sectors. Growth in the economy was primarily driven by the non-financial corporations’ sector, whose value added increased by 7.6 per cent, contributing to 4.7 percentage points to overall growth in 2025. The household sector, which includes unincorporated enterprises and self-employed workers, recorded an increase in value added of €94 million, or 2.9 per cent, contributing to 0.4 percentage points to overall growth. The value added generated by general government increased by 7.9 per cent compared to the previous year, resulting in a contribution of 1.0 percentage point to overall growth. The financial corporations’ sector recorded a marginal decline in value added of 0.7 per cent, reducing overall growth by 0.1 percentage point. Similarly, value added generated by Non-Profit Institutions Serving Households (NPISHs) decreased by 9.8 per cent, reducing overall growth by 0.1 percentage point.
Non-financial corporations
Gross value added generated by non-financial corporations increased by 7.6 per cent in 2025 compared with 2024. Compensation of employees’ payable rose by 9.0 per cent, while gross operating surplus and mixed income increased by 6.6 per cent. Consequently, the share of the sector’s gross operating surplus and mixed income in its gross value added declined from 55.7 per cent in 2024 to 55.2 per cent in 2025. The share of the sector’s compensation of employees in the economy stood at 61.6 per cent.
After accounting for the net balance of property income, including interest, dividends and other property income flows, the balance of gross primary income increased by 18.1 per cent, from €3,114 million in 2024 to €3,678 million in 2025, following an improvement in net property income of €75 million.
Gross saving of non-financial corporations increased by 19.2 per cent, from €2,391 million in 2024 to €2,849 million in 2025. Flows recorded in the secondary distribution of income account contributed 1.0 percentage point to this increase, mainly reflecting a €136 million rise in current taxes on income, wealth. Gross saving and the positive balance of net capital transfers were sufficient to finance gross capital formation and net acquisitions of non-produced non-financial assets, leaving the sector in a net lending position, despite a €35 million decline in net lending compared with 2024 (Table 3).
The investment rate of non-financial corporations, measured as gross capital formation relative to gross value added, remained broadly stable at 18.3 per cent in both 2024 and 2025. The sector’s self-financing ratio, calculated as gross saving divided by gross capital formation increased to 1.2, indicating that gross saving exceeded gross capital formation by around 20 per cent (Table 10).
Financial corporations
In 2025, the gross value added of financial corporations decreased by 0.7 per cent compared with 2024, falling from €1,906 million to €1,893 million. Gross operating surplus and mixed income also declined by 8.6 per cent, from €1,006 million to €919 million. Compensation of employees payable increased by 8.7 per cent, from €894 million to €971 million, accounting for 9.2 per cent of total compensation of employees in the economy.
The sector’s net balance of property income improved substantially during 2025. While property income receivable increased by €391 million, property income payable declined by €1,068 million, resulting in the balance of gross primary income rising from -€232 million in 2024 to €1,140 million in 2025, an improvement of €1,372 million.
The evolution of flows recorded in the secondary distribution of income account, including taxes on income, social contributions and benefits, and other current transfers, resulted in the sector’s gross disposable income increasing from -€1,184 million in 2024 to €39 million in 2025. This improvement was mainly driven by the strong recovery in primary income, which more than offset the increase in other current transfer outflows and the continued high level of income taxes payable by the sector.
The increase in the sector’s gross disposable income, together with a decline in the adjustment for the change in pension entitlements payable in relation to pension funds with non-resident clients, contributed to a €1,332 million increase in gross saving.
Gross capital formation by financial corporations amounted to €354 million in 2025, an increase of €18 million over the previous year. After taking into account capital transfers and acquisitions less disposals of non-produced non-financial assets, the sector recorded net borrowing of €7 million, compared with the €1,321 million in 2024. This represents a substantial improvement in the financial position of the sector and was one of the main contributors to the strengthening of the economy-wide net lending position in 2025 (Table 4).
General government
Gross value added of general government increased by 7.9 per cent in 2025 compared with the previous year, rising from €2,618 million to €2,825 million. Compensation of employees payable increased by 8.1 per cent, reaching €2,411 million, and accounted for 22.8 per cent of total compensation of employees in the economy.
Gross disposable income of the general government sector increased by 9.7 per cent, from €4,325 million in 2024 to €4,746 million in 2025. Supported by this increase, gross saving improved from €433 million in 2024 to €527 million in 2025. This improvement was achieved despite an 8.4 per cent increase in final consumption expenditure, which rose from €3,893 million to €4,219 million.
Gross capital formation by general government amounted to €741 million in 2025, remaining broadly stable when compared with €742 million in 2024. Taking into account capital transfers and acquisitions less disposals of non-produced non-financial assets, the sector recorded a net borrowing of €506 million in 2025, compared with €815 million in 2024. This indicates a marked improvement in the financial position of general government, driven by higher disposable income, stronger savings and a reduced negative balance on the capital account (Table 5).
Households
The household sector includes individuals or groups of individuals whose principal function is consumption and produce goods and non-financial services for exclusively own final use. Own final use relates to services of owner-occupied dwellings, and domestic services produced by payable employees. The household sector also includes sole proprietorships and partnerships without legal status other than those treated as quasi-corporations, and which are market producers.
The gross value added generated by the household sector increased by 2.9 per cent in 2025 compared with the previous year, rising from €3,281 million to €3,375 million. Gross operating surplus declined by 6.8 per cent, from €1,296 million to €1,208 million. On the other hand, mixed income, which represents income from self-employment, increased by 9.9 per cent, from €1,595 million to €1,753 million. Compensation of employees payable by households increased to €441 million, representing 4.2 per cent of total compensation of employees in the economy.
The balance of gross primary income increased by €878 million, from €13,861 million in 2024 to €14,739 million in 2025. This increase was mainly driven by an €800 million rise in compensation of employees receivable and a €70 million increase in gross operating surplus and mixed income. These developments were partly offset by a deterioration in the net balance of property income, as property income receivable declined from €1,812 million to €1,699 million (Table 6).
The household saving rate increased from 18.2 per cent in 2024 to 19.2 per cent in 2025. Nominally, gross disposable income per head increased by 4.1 per cent in 2025, while real gross disposable income per head rose by 4.5 per cent. These followed growth rates of 11.6 per cent and 7.9 per cent, respectively, in 2024 (Table 10).
Household investment, measured by gross capital formation, amounted to €976 million in 2025 compared with €918 million in 2024. The household investment rate stood at 7.4 per cent of gross disposable income, broadly unchanged from 7.4 per cent in the previous year.
After considering capital transfers and acquisitions less disposals of non-produced non-financial assets, households recorded a net lending of €2,143 million in 2025, compared with €1,771 million in 2024. This reflects the continued strong financing capacity of the household sector (Table 6).
Non-profit institutions serving households (NPISH)
In 2025, the gross value added generated by the NPISH sector decreased by 9.8 per cent compared with the previous year, falling from €279 million to €252 million. This decline was primarily driven by lower compensation of employees, which decreased from €261 million in 2024 to €233 million in 2025. The higher level of compensation of employees recorded in 2024 partly reflected the impact of new collective agreements, particularly in education, including payments related to arrears. The share of the sector’s compensation of employees in the economy stood at 2.2 per cent.
The sector’s gross disposable income reached €430 million in 2025, representing an increase of 2.5 per cent over the previous year. This improvement was mainly attributable to a €14 million increase in net current transfers receivable, which more than offset the decline in net property income. In contrast, adjusted gross disposable income was affected by developments in social transfers in kind. The lower compensation of employees in 2025, following the higher level recorded in 2024 partly due to arrears, contributed to lower NPISH output and, consequently, to a decline in social transfers in kind provided to households.
This development was also reflected in NPISH final consumption expenditure, which declined by €29 million in 2025. Gross disposable income increased while final consumption expenditure declined, gross saving rose from €31 million in 2024 to €70 million in 2025. Therefore, the movement should be viewed partly in the context of the higher expenditure recorded in 2024, including the impact of arrears, rather than solely as an underlying increase in the sector’s saving position.
Investment by NPISH totalled to €18 million in 2025, slightly higher than the €17 million recorded in 2024. After taking into account the balance of capital transfers and acquisitions less disposals of non-produced non-financial assets, the sector recorded net lending of €54 million in 2025, compared with €15 million in 2024. This reflects an improvement in the net lending position of the sector (Table 7).
Tables
- xlsx Table 1. Net Lending (+) / Net Borrowing (-) of the National Economy by Institutional Sector 14.07 KB
- xlsx Table 2. S1. Total Economy 39.55 KB
- xlsx Table 3. S11: Non-Financial Corporations 31.19 KB
- xlsx Table 4. S12: Financial corporations 31.11 KB
- xlsx Table 5. S13: General Government 32.79 KB
- xlsx Table 6. S14: Households 34.42 KB
- xlsx Table 7. S15: Non-profit institutions serving housholds 29.82 KB
- xlsx Table 8. S1M: Households and non profit institutions serving households 34.53 KB
- xlsx Table 9. S2: Rest of the World 29.36 KB
- xlsx Table 10. KEI: Key Economic Indicators 21.57 KB
- xlsx All Tables 203.09 KB
Definitions of the terms used in these tables are available in the Glossary
Methodological Notes
1. The objective of the annual non-financial accounts for the institutional sectors is to analyse the economic relationships between the institutional units that form the national economy (non-financial corporations (S.11), financial corporations (S.12), general government (S.13), households (S.13) and non-profit institutions serving households (S.15)) and between them and the rest of the world in an ordered series of accounts that describe each phase of economic process (production and creation of income, distribution and redistribution, final consumption, savings and asset accumulation). These results are prepared in compliance with the conceptual and regulatory framework established by the European System of National and Regional Accounts (ESA 2010), approved by the Regulation (EU) 549/2013, of the European Parliament and of the Council, of 21 May. More information on the sequence of non-financial account is available in ESA 2010, Chapter 8.
2. In February 2025, the National Statistics Office (NSO), published the Non-financial Annual Sector Accounts (ASA) Inventory. It aims to provide a comprehensive overview of the national compilation procedures of annual non-financial accounts by institutional sector according to the European System of National and Regional Accounts (ESA 2010). An updated version as at October 2026 is now available.
3. The results are disseminated online 90 days following the end of the reference year (t+90 days, being t the reference year). These results are consistent with the quarterly non-financial accounts for the institutional sectors compiled at t+85 following the end of the reference year (t+85 days, being t the reference quarter). In case of Malta, quarterly non-financial accounts are only compiled for S.1, S.2 and S.13. The rest of the sectors are voluntary for countries whose GDP at current prices represents less than 1 per cent of the corresponding Union total. The 1 per cent threshold is calculated as a moving average based on the latest three available years. The quarterly non-financial accounts for the institutional sectors dataset is available online. This calendar is compatible with the requirements for availability of national accounts results established by Regulation (EU) 549/2013 on the European System of National and Regional Accounts 2010.
4. Data in this news release are consistent with the Gross Domestic Product: Q2/2026 news release published on 27 August 2026 and should be considered provisional for 2023 to date. A press information notice published on 17 August provides an overview of updates applied from 2020 onwards in main aggregates and ASA.
5. Compared to the previous release which covered reference years 1995 to 2024, the following enhancements have been done:
• Change in the methodology applied to transfers into and out of pension funds. “Transfers in” are recorded as D.61 (D.75 in the case of non-resident clients), while “transfers out” are now recorded as D.62 (D.75 in the case of non-resident clients). The treatment is neutral in the non-financial accounts (B.9 = 0), as transactions recorded under D.61 uses are offset by corresponding transactions under D.8 resources. The methodology has been further refined to incorporate the recording of transfers out under D.62 and D.75 for resident and non-resident clients, respectively. Reference years 2012–2020 will be updated as part of the next benchmark revision.
• Inclusion of intra-household transfers under other current transfers (D.75), using EU-SILC data, from reference year 2021 onwards. This treatment increases the level of D.75 transactions but is neutral with respect to gross saving and net lending/net borrowing. Reference years 1995–2020 will be updated as part of the next benchmark revision.
• Inclusion of non-market output of S.121 in Other current transfers (D.75) in line with ESA 2010 § 14.16. Reference years 1995-2020 will be updated in the next benchmark revision.
Integration of a new data source for Acquisitions less disposals of non-produced assets (NP) as from 2021 onwards with counterparty transactions shown in S.11, S.12 and S.2. Reference years 1995-2020 will be updated in the next benchmark revision.
6. Revisions to net lending (+)/net borrowing (-)
Revisions compared with the previous release affected the level and, in some cases, the sign of net lending/net borrowing (B.9) across several institutional sectors. For S.1 and S.2, revisions mainly reflected updates to Balance of Payments (BOP) statistics affecting primary income, following the incorporation of updated administrative information, together with revisions to NP arising from the integration of new data sources. For S.12, revisions were mainly attributable to updates to primary income variables in BOP statistics. For S.15, the revision in 2024 primarily reflected routine updates to data sources underlying other current transfers (D.7).
Revisions to S.14 reflected a combination of factors. These included revisions to primary income, together with updates to other current transfers (D.7), particularly for 2021 and 2022, as well as the alignment of the sectoral allocation of current taxes on income and wealth with Government Finance Statistics (GFS). Further revisions resulted from updated estimates of household final consumption expenditure (HFCE).
As a result, the classification between net lending and net borrowing changed for several reference years. S.1 changed from net lending to net borrowing in 2022 and 2024; S.11 from net lending to net borrowing in 2022; S.12 from net borrowing to net lending in 2023; S.15 from net borrowing to net lending in 2024; and S.2 from net borrowing to net lending in 2022 and 2024.
7. A more detailed breakdown of annual non-financial accounts by the institutional sectors and by variable is available online. Calculations are performed using the full underlying values prior to rounding, while figures presented in this news release are rounded for publication purposes. Consequently, calculations based on the published figures may differ slightly from the reported results. Any such differences are attributable solely to rounding and do not represent inconsistencies in the underlying data or calculations.
8. References to this news release are to be cited appropriately. For guidance on access and re-use of data please visit our dedicated webpage.
9. More information relating to this news release may be accessed at:
