Wednesday, 1st July 2009 - 12:38CET
Minister says economy may remain in negative territory this year
Finance Minister Tonio Fenech acknowledged this morning that the Maltese economy will for the rest of this year either experience zero GDP growth or slide into negative growth of up to -0.9 percent.
The economy was already in negative growth in the last quarter of last year and the first quarter of this year.
Mr Fenech was speaking after a meeting with the social partners which kicked off the consultation process ahead of the Budget for 2010. The Budget will be preceded by the pre-Budget document in mid-July.
The minister said that while Malta was being buffeted by the economic crisis, it was faring better than most other European countries which were experiencing negative growth of -4%.
This, however, was a delicate time for the Maltese economy, and one had to be careful to present a balanced budget that did not cause disturbance. Unless the economy was given the conditions to grow, other sectors such as social services could not be addressed.
Mr Fenech said the social partners had called for investment in Product Malta, measures to tackle inflation, reduce bureaucracy and raise productivity.
When he spoke on tourism, Mr Fenech said this sector was experiencing uncertainty because of late bookings, and as a result hoteliers and other operators were not committing to engaging staff for the summer.
The minister said unemployment had increased by 1,000 over last year, but had now levelled out.
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Comments
I fully understand your point of view but there is another school of thought which holds that there is nothing better than the truth so that all concerned will act accordingly and try to save the situation. In the blind, everyone goes on doing little or nothing and suddently they come face to face unprepared. This is what happened to us. So while I respect your view, I still think that the second approach is better.
@ J Martinelli: You dare mention neglect? Just look at what states were St Lukes, Mater Dei (Yes the new hospital!) the streets are, and you will realise where neglect is. So long for the evaporation of comments! It's better if you take you head out of the sand first!
@ J Martinelli: Neglect? Just see what I said to your colleague who lives in disneyland like you M Catania, and if you call Air Malta and the above mentioned neglect, then you do seriously have a problem. Because we have all the roads without holes, and the shortage of healthcare staff. And you try to answer by quoting another blue nosed? I think it is your comments that will evaporate now. What about the 'Money no problem' adopted by your beloved EFA? Keep your head in the sand Mr Martinelli, since you fail to see reality!
kieku sejrin daqshekk hazin daqs kemm qed jghidu tar-restaurants (ghax minix narahom vojta jien) inaqqsu tikka l-prezzijiet mhux jibqghu jghollu
ahna dejjem nippretendu kemm se jnaqqas il-gvern
U haga ohra
Ftit ilu kienet fl-ahbarijiet li mizura li qed tghid int tiswa EUR 40 miljun. Lest thallas taxxa ghal dan is-sens?
How wrong you are, my friend.
Had Minister Fenech, one year, or 6 months ago started saying "we are in a recession", the negative impact it would have had on consumer/business confidence - you wouldnt have imagined it. Your comment indicates to me you are not in business (No offence of course). In business, its all about confidence.
Had Tonio Fenech expressed worry of a recession 6 months ago, instead of 1% negative growth we would be hear discussing negative growths much much higher.
Talking about NP deficits over the last 22 years...
"For all the bad rhetoric that Eddie Fenech Adami got for accepting the role of President of our beloved Republic, he had visions. Perhaps at those times the visions were much clearer than they are today: water, power stations, airports, etc. But they were all necessary for a sustainable future. He did not worry about deficits that kept his predecessors from doing what was necessary. And that is what won him the election, my friends".
Those are not my words A Zammit, they appeared today in another paper signed Professor Pierre Mallia taken out of a much more comprehensive article mainly about Health Care.
So before you even dare mention deficits, think about the utter neglect of the infrastructure during the sixteen years of a Socialist dictatorship. Your comments will instantly evaporate!
Don't forget that PN had to lump MLP's half baked projects such st the Drydocks and Shipbuilding. And they had to built the country's infrastructure from scratch or are you better off with 2nd hand equipment as in your MLP's time....
You're perfectly right. All European countries experienced a growth with the exception of Malta. Because according to many self made Maltese economists Malta is faring badly due to Gonzi being at the country's helm. We would not have gone through this recession if we had Joseph Muscat .....
Aren't the words "STOP" and "ENOUGH" in Dr. Tonio Fenech's vocabulary?
The worst is yet to come.
Is it not always the same old story now that Elections are over???
It:s moving aside the magic carpet and throw all the dust that was hidden underneath it to our faces. Malta,prepare yourselves for the untold horror story.
To boost tourism in Malta, the goverment should follow France and slash the cost of restaurant meals via a cut in VAT down to 5% in a move to boost consumer confidence and spending as the European economy faces its worst slump for 80 years.