Eurostat backs NSO revision

The European Union's statistical arm, Eurostat, has certified the correctness of the recent statistical revision of GDP figures by the National Statistics Office (NSO).

The revision proved controversial and even led to the resignation of NSO director general Gordon Cordina after a campaign waged by the Labour Party questioning the changes.

In a technical note accompanying the opinion delivered by the European Commission on Malta's updated convergence programme of 2006-2009, Eurostat said the recent revision was made according to established EU rules.

"These revisions were carried out within the regular assessment process of compliance with Eurostat's statistical practices," Eurostat said.

Last December 7, the Maltese authorities transmitted to Eurostat new GDP data since 1995, showing - with respect to figures published in September 2006 - downward revisions in nominal GDP levels up to about one per cent between 1996 and 2003. For 2004 and 2005, nominal GDP has been revised upwards by 0.4 per cent and 0.9 per cent, respectively, and for the first half of 2006 the revision corresponds to 1.1 per cent.

Eurostat said that after verifying the methodology used in the revision, it used the new figures to assess Malta's updated convergence programme.

Sources close to Eurostat told The Times yesterday that following the controversy that erupted over this revision, contacts were made with the NSO. A thorough examination was made by EU officials on the way the revision was carried out.

The sources said all the EU's statistical procedures were followed by the NSO and the exercise was verified as being in line with normal EU procedures.

Contacted by The Times, the Parliamentary Secretary at the Finance Ministry, Tonio Fenech confirmed that the EU has just certified the revision conducted by the NSO.

"I don't have any further comments to make as facts are louder than words in this case.

"The only thing I would like to say is that all this shows how the MLP's claims were only made to tarnish the image of the NSO abroad. The orchestrated attack on the NSO's head showed that the MLP had ulterior partisan motives," he said.

In a technical note issued following its revisions, the NSO had explained that revisions to the GDP data for the past few years had to be seen within the context of the NSO's commitment to Eurostat following Malta's accession to the EU.