[31] The strengths of Malta's economy are its advantageous location, being situated in the middle of the Mediterranean Sea at a crossroads between Europe, North Africa and the Middle East, its fully developed open market economy, multilingual population (88% of Maltese people speak English),[32] productive labour force, low corporate tax[33] and well developed finance and ICT clusters.

[35] In the 2013 calendar year, Malta recorded a budget deficit of 2.7%,[36] which is within the limits for eurozone countries imposed by the Maastricht criteria, and Government gross debt of 69.8%.

In 2023, 7.8 million people travelled through the airport, providing $2.7 billion in revenues to the Maltese economy, equivalent to 24% of Malta's Gross Domestic Product (GDP).

During the Napoleonic Wars (1800–1815), Malta's economy prospered and became the focal point of a major trading system.

Malta's economy became prosperous from this trade and many artisans, such as weavers, found new jobs in the port industry.

In 1869, the opening of the Suez Canal benefited Malta's economy greatly as there was a massive increase in the shipping which entered in the port.

The Mediterranean Sea became the "world highway of trade" and a number of ships called at Malta for coal and various supplies on their way to the Indian Ocean and the Far East.

This was primarily due to the invention of large ships which had become oil-fired and therefore had no need to stop in the Grand Harbor of Malta to refuel.

At the end of World War II, Malta's strategic importance had reached a low point.

Modern air warfare technology and the invention of the atomic bomb had changed the importance of the military base.

The British lost control of the Suez Canal and withdrew from the naval dockyard, transforming it for commercial shipbuilding and ship repair purposes.

With the help of a favorable international economic climate, the availability of domestic resources, and industrial policies that support foreign export-oriented investment, the economy has been able to sustain a period of rapid growth.

[40] From 2001 to 2005 the mean GDP real growth was 0.4%[41] due to Malta losing pace in tourism and other industries.

Fiscal policy has been directed toward bringing down the budget deficit after public debt grew from a negative figure in 1988 to 56% in 1999 and 69.1% in 2009.

[42] Despite a great potential for solar and wind power,[43] Malta produces almost all its electricity from oil, importing 100% of it.

[50] As of 2008, an estimate of 15% of Malta's citizens were living below the poverty line, which was slightly better than the EU average of 17% at the time.

[52] Under this policy, stakeholders will be involved in the discussion of how to reduce hardships experienced by families living in Malta.

[59] This same government introduced the "in-work" benefit which forces more people to work while helping the most poor and desperate.

[61] For a married couple with only one parent gainfully employed whose income is greater than €6,600 and less than €16,500, they are eligible for a maximum payable rate of up to €350 yearly per child.

According to the programme, a foreigner whose income is more than 75% from pension payments, can receive a residence permit in the country and a special tax status.