New debt and unemployment statistics withheld by NSO until after elections

In an unprecedented move, the National Statistics Office (NSO) has delayed the release of Malta’s latest debt and unemployment statistics until after the elections, raising concerns that the government aims to protect voters from deteriorating public finance data.

The statistics covering the first four months of 2026 were due to be released on Friday as part of the NSO’s regular monthly schedule. Yet in a statement issued this week, the NSO said the data would not be published “in observance of reflection day”.

The NSO, which falls under the political responsibility of Finance Minister Clyde Caruana, traditionally releases government debt and unemployment figures towards the end of each month, regardless of electoral campaigns.

The decision is being widely interpreted as a tactic aimed at preventing the publication of figures that could undermine the Labour government’s claims of sound economic management, the day people are due to vote.

Prime Minister Robert Abela and his finance minister have repeatedly portrayed themselves as steady custodians of the Maltese economy, despite government debt increasing by around €6 billion since 2020, an unprecedented surge in public borrowing.

Malta is now paying close to €300 million annually simply to service its debt, according to Treasury figures reviewed by The Shift.

Debt servicing costs have risen sharply from approximately €180 million in 2020 to almost €297 million in 2025, an increase of more than 60% in just five years.

The figures indicate that the country is currently spending around €814,000 per day solely on interest payments, without reducing the debt itself.

Debt servicing represents only the cost of borrowing and does not reduce the principal debt owed by the government.

The increase has been driven by two parallel developments over the past five years.

First, the government embarked on an aggressive borrowing spree following the Covid pandemic, with national debt climbing from roughly €6.8 billion in 2020 to more than €11.4 billion by 2025 as public expenditure expanded rapidly.

At the same time, European interest rates rose sharply after 2022.

For years, Malta benefited from historically cheap borrowing costs. However, as older government bonds matured, they had to be refinanced at significantly higher rates, substantially increasing annual interest obligations.

Caruana has consistently argued that Malta’s debt remains sustainable because the economy is growing rapidly. Government officials frequently cite Malta’s debt-to-GDP ratio, still below the European Union’s 60% threshold, as evidence that public finances remain under control.

Yet economists have increasingly warned that strong economic growth does not eliminate the burden created by escalating interest payments.

Five years ago, Malta was paying around €0.5 million daily in interest. Today, that figure has increased by more than €300,000 every single day.

Unless government borrowing slows significantly or interest rates fall sharply, Malta’s debt servicing bill is expected to continue rising.