A recent KPMG report has highlighted that Malta’s fertility rate is among the lowest in Europe, currently standing at 1.06 — significantly below the EU average of 1.46 and the replacement rate of 2.1.
If current trends persist, projections indicate that by 2075, the native Maltese population could shrink to 240,000, with 40% of individuals aged 65 or older. This demographic shift could put considerable strain on the pension system and the labour market.
KPMG has called for “radical action” to address this issue and reverse the population decline in order to safeguard the sustainability of Malta’s healthcare and education systems.
Over the past decade, Malta’s population has grown by 32%, largely driven by an influx of expatriate workers, with foreigners making up 25% of the population by 2022, marking a significant demographic shift.
The report recommends measures such as creating more family-friendly work environments, enhancing childcare support, offering financial incentives for parents, and developing strategies to integrate and retain a skilled immigrant workforce.
In response, the Nationalist Party (PN) pointed out that the report exposed the flaws in Malta’s current economic policy, which heavily relies on mass foreign labour importation.
The PN argued that this strategy, lacking a clear plan, has led to increased pressure on public services, healthcare, education, and housing.
The Opposition called for a shift toward a sustainable socio-economic model focused on innovation and creating new job sectors for the youth.
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