Issue link: https://maltatoday.uberflip.com/i/1543144
4 maltatoday | SUNDAY • 8 FEBRUARY 2026 NEWS Programme Officer (EU Funds) Within the Ministry for European Funds and Implementation of the Electoral Programme Boom leaves elderly women behind — Central Bank reports JAMES DEBONO jdebono@mediatoday.com.mt ELDERLY women are Malta's most at-risk group for poverty and social exclusion, a Central Bank of Malta analysis shows, even as living standards have im- proved for working-age house- holds. Recent poverty and social ex- clusion indicators published in the Central Bank's Quarterly Re- view, Chief Economics Officer Aaron G. Grech notes a paradox: Despite rapid economic growth, Malta's at-risk-of-poverty-or- social-exclusion (AROPE) rate remains on par with countries experiencing far weaker growth. The most worrying trend is among people aged 65 and over. Their AROPE rate increased by almost seven percentage points over the past decade, with wom- en in this age group experienc- ing the steepest rise—up 9.5 per- centage points. Grech explains that this de- terioration is largely driven by the "relative" nature of poverty measurement. Malta's poverty threshold, set at 60% of medi- an income, rose by 51% over 10 years, far outpacing the 21% increase in the cost of living. While pensioners benefited from unprecedented increases in disposable income, most live in single-income households and were unable to keep pace with the rapid earnings growth of working-age families, increas- ingly supported by two earners as more women entered the la- bour market. Single persons without chil- dren also saw their at-risk-of- poverty rate climb sharply, rising by nearly 14 percentage points between 2012 and 2024. Single parents, meanwhile, remain the group with the highest absolute risk of poverty, even though their situation has improved. By contrast, the strongest gains were recorded among work- ing-age adults and children. AROPE among people aged 18 to 64 fell by five percentage points, with working-age wom- en leading the improvement. The at-risk-of-poverty rate for women aged 25 to 49 dropped from 15.6% in 2013 to 11.1% in 2024. Children's material well-being also improved markedly. While their overall AROPE perfor- mance fluctuated over time, the share of children experiencing severe material and social dep- rivation more than halved, fall- ing from 11.6% to 4.8%. Single parents recorded the largest re- duction in material and social deprivation, declining by over 43 percentage points. The report attributes these gains primarily to Malta's dra- matic labour market transfor- mation. Female employment surged from 39.6% in 2005 to 84.7% in 2024, supported by the introduction of free childcare in 2014, which sharply reduced the number of children under three receiving no formal care. At the same time, many women shift- ed from part-time to full-time work, with part-time employ- ment among women aged 25 to 49 falling to just 14%. Grech also highlights what he terms a "subjective pover- ty conundrum." While relative poverty indicators show deteri- oration for some groups, survey data suggests far stronger im- provements in how households perceive their own financial situation. Among the elderly, subjective poverty is roughly half the rate implied by relative measures, indicating that ma- terial living standards and the ability to make ends meet have improved even as pensioners fall behind a rapidly rising median income. The most worrying trend is among people aged 65 and over. Their AROPE rate increased by almost seven percentage points over the past decade, with women in this age group experiencing the steepest rise