Electronics slump to blame for 2008 dismal exports

The slump in the electronics sector was the major contributor to a dramatic drop in exports last year, which placed Malta as the worst performer in the EU.

Statistics released this week by Eurostat show that between January and November 2008 the value of exports dropped to €1.7 billion from €2 billion in the same period a year before. The electrical machinery sector, which includes chip maker STMicroelectronics, was responsible for at least two-thirds of the drop in export revenues.

Malta was one of only four countries that registered negative growth in exports last year. Moreover, at minus 14 per cent, the reduction was way above the second worst performer, Ireland, which saw its exports shrink by six per cent.

The figures come as the chipmaker, for years a bastion of Maltese exports, announced it would be shedding up to 450 workers from the Maltese plant this year in line with plans to downsize its worldwide operations.

The Eurostat figures confirm earlier data issued by the National Statistics Office showing how the value of exports for the whole of 2008 dropped by €252.2 million. Some €200 million of these were attributed to the electrical machinery sector.

Even so, electronic exports still managed to top the €1 billion mark in 2008 contributing to almost half of the country's total exports.

The three top export sectors in terms of monetary value in 2008, were pharmaceutical products, printing and electrical machinery.

The pharmaceutical industry contributed €167.8 million to the value of exports, an increase of €16 million over 2007, and the printing industry registered a total of €99.3 million worth of exports, an increase of €6.5 million over the previous year.

ksansone@timesofmalta.com