Malta has been one of the fastest growing countries in the EU after the crisis, thanks to a rapid structural rebalancing towards export-oriented services—mainly remote gaming and tourism. The authorities are now exploring new development areas around the blockchain technology. Prudent fiscal policy and successful structural reforms have helped strengthen public accounts, boost productivity growth and maintain social cohesion. However, because growth has been heavily reliant on foreign labor, the pressure on housing and public infrastructures has increased rapidly with implications for social inclusion. Questions have also recently surfaced regarding the implementation of the country’s anti-money laundering and countering the financing of terrorism (AML/CFT) framework, including new risks related to crypto-asset activities.
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