Malta 'still in recession' - MEP argues
Malta was still in recession, Labour MEP Edward Scicluna argued in a statement today.
"Every family in Malta would wish to believe that during the last quarter of last year Malta did indeed come out of the recession. Unfortunately this is not yet the case. If the Prime Minister would have asked the NSO for a breakdown of this increase in GDP he would have been told the following.
"Between the last quarter of 2009 and the last quarter of 2008 in nominal terms (since deflators are not yet published for all the reported data) public and private consumer expenditure fell by €6 million; investment fell by €21 million, receipts from exports of manufacture and tourism together fell by €42 million, compensation of employees fell by €14 million," Prof Scicluna, an economist, said.
"What did go up were gross operating surpluses. These rose by €33 million. But then these were made up of an increase of €37 million in the operating surpluses of banks and other financial intermediaries and a fall in €4 million elsewhere in the rest of the economy.
"Alas, if truth be told, we have to wait a bit more before announcing that our economy is truly out of the recession", Prof Scicluna said.
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Peter Aquilina
Mar 15th 2010, 09:45
Most likely, Malta is in a recession which is still and has been within a long, long, longtime recession !!!!!!!
Anthony Farrugia
Mar 15th 2010, 09:26
Another doom and gloom merchant who seems disappointed that Malta is slowly coming out of the recession. Politics seem to have overtaken a professional scholarly look at the improving economy!
Joseph Cauchi
Mar 15th 2010, 09:22
What do you expect from an economist who happens to be directly politically involved and an EU representative of the (M)LP? Unfortunately, Prof. Scicluna’s professional credibility has absolutely EVAPORATED in thin air, now, unlike some months ago! Would Prof. Scicluna pass any favourable comments as regards to the PN Government without bearing the wrath of his Masters (MLP)? JC.
K Tabone
Mar 15th 2010, 08:56
Is this the same person who encouraged pushed Alfred Sant to devaluate the Maltese Lira prior adopting the Euro? The Prime Minister said that there are encouraging signs that Malta is heading out of recession.
David Scicluna
Mar 14th 2010, 21:13
@j.schembri Seems it is you who are viewing all this from a partisan point of view. First of all Profs.Scicluna is an MEP, that is a political job. So what do you expect him to talk about, fishing?!! Even the prime minister was political in his statement, but for you that is OK. I, for one, want to know the truth, being positive or negative. Now is is a question of credibility whom you believe. I will wait for someone from your party to challenge Profs.Scicluna's figures. One last observation, on what study did you base your last statement?
Ray Buttigieg
Mar 14th 2010, 21:06
The Labour Party just can not accept anything that is positive. The statement of Profs Scicluna smells of jealousy. It seems that the PL will be happy if Malta remained in recession.
C.camilleri
Mar 14th 2010, 20:51
@ PN apologists The question we need to ask is whether Profs Scicluna is right in his analysis? PN apologists opted to criticize the profs personally but not what he wrote. So I take it that what he wrote is right and that the government is only embarking on a feel good factor exercise.
H. Montanaro
Mar 14th 2010, 20:48
@ P gauci I well remember Profs. Scicluna predicting PN majority "WIPED OUT", but it didn't happen. Yet you still insist he didn't got it wrong!!! So according to you Labour won!!! Keep dreaming. His prediction that we will not reach the targets to introduce the EURO were proved wrong too. Your claim that it is an ongoing process which Malta has to 'sit for' every year is completly irrelevant. Malta reached the targets, EURO was introduced and IS HERE TO STAY.
Mark Dalli
Mar 14th 2010, 19:36
There is always two sides to a coin and it's healthy to hear both always as to be aware and make the right decisions possible.
leo attard
Mar 14th 2010, 19:11
@montanaro........But you forget to take into consideration the votes given to the AD party, etc...put all together it would seem that while the PN has the majority party-wise, yet it does not represent the will of the majority of voters nation-wise. correct me if i'm wrong
J. Schembri
Mar 14th 2010, 18:33
Thanks for the encouraging news. Pity that a professional person puts partisan politics before national interst!
Undoubtedly the news the PM cautiously announced were positive news. Isn't this the way other EU countries monitor their economy?
Frank cilia
Mar 14th 2010, 19:23
The truth is that only local business man and banks know if we are still in recesion. And its easy to say malta is out of recesion when reality shows we are still deep in. Most of the population are struggling to make ends meet at the end of the month and companies are working for break even or trying to make the least loses possible. With heavy taxes , expensive electricty bills , the economy what get out of recesion for long time because people are afraid to spend or to do an investment. So its up to the goverment to invent something to help the populaton start spending again
wally vella-zarb
Mar 14th 2010, 18:32
Even Greece officially met the qualifying criteria and 'passed the examination' to be allowed to join the Eurozone. Unfortunately, it is now becoming manifestly evident that those Greek 'qualifications' were based on crooked figures that bore no relation to the realities of the Greek economy at that time.
I would not be surprised if the same is discovered about our economy.
The international stature of Prof Scicluna as an eminent economist is confirmed by the assignments and responsibilities that he has been given by Brussels and is in no way dependent upon the approval of Net TV and the usual PN acolytes.
Rather than living in an artificial paradise as painted by our virtual 'Ministry of Favourable Statistics' I much prefer to notice and observe what is all around me in everyday life. If others are content to live in a make-believe dreamland of rainbows and roses, they are more than welcome.
J Martinelli
Mar 14th 2010, 19:20
EuroStat is also wrong, Wally? But of course whatever Joseph and Edward say, is sacrosant!
H. Montanaro
Mar 14th 2010, 17:32
I remember before the last General Election Profs Scicluna after doing his mathematical homework claimed that the PN majority was "WIPED OUT". But as we all know it was certainly another BIG ERROR becauce PN retained the majority. Also for the introduction of EURO he claimed the targets will not be reached, but Malta reached all targets, passed the exams and we got the EURO.
P. Gauci
Mar 14th 2010, 18:09
The truth is that before the votes started to be counted he said that due to the low turnout the PN lost 10,000 of its 12,000 majority and that if there are 'no swings' the PN should be ahead by just 2,000 votes. The Nationalists ended up winning by 1,500 votes so I don't think he got it wrong.
As regards the Euro please forget about the childish and simplistic idea that 'we passed the exam' Being part of the euro is an ongoing process which Malta has to 'sit for' every year.
R Gatt
Mar 14th 2010, 17:18
Always the bearers of good news.
M.Farrugia
Mar 14th 2010, 17:18
thanks tal kuragg profs
P. Gauci
Mar 14th 2010, 18:12
I prefer to hear the ugly truth rather than being told a nice lie.
Neville Borg
Mar 14th 2010, 17:09
Some people seem to prefer to hear outright lies and half-truths as long as they sound positive rather than hear the truth, the whole truth and nothing but the truth. Any economist worth his salt will tell you that Profs Scicluna is dead right and Dr Gonzi's statement is just another blah blah blah dished out for the benefit of Net news viewers and In-Nazzjon readers.
Randolph Peresso
Mar 14th 2010, 16:46
May I remind you that Profs Scicluna is the same person who had said that the EU would not allow us to join the Euro zone as it was not true that our deficit was below 3%!
Stephen Borg Cardona
Mar 14th 2010, 16:29
Thats right do your patriotic best to support our country.
victor vella
Mar 14th 2010, 15:51
Alas, if truth be told, we have to wait a bit more before announcing that our economy is truly out of the recession", Prof Scicluna said.
so the Goverment according to Porf Scicluna is on the right track.
S Borg
Mar 14th 2010, 16:53
To ascertain for sure if we are really in or out of the recession we have to feel the pulse of the people. People run the economy and not the government.
J Farrugia
Mar 14th 2010, 14:53
Instead of encouraging the people to look forward to good times which will certainly come our way, he flatters his pessimism to the four corners of the world. Can any economist tell us the truth about our economy? Is it recovering or what? Who is lying who is telling the truth? Where are our rainbow of economists? No wonder nobody ever takes any notice of these filibusterers.
M Buttigieg
Mar 14th 2010, 14:50
Always doom and gloom from thisman. If I remember correctly this is the same man who in 2007, some twelve months before Malta joined the eurozone, said that we will not meet all the criteria to join the eurozone.
Seems that these people never change! Really modern and very progressive!
Ian Borg
Mar 14th 2010, 22:17
Well actually we did not meet them. On paper we did, but we were certainly not prepared for the eurozone. National debt never fell to 60% of GDP, and the deficit was brought down mainly because of privatisation. We cannot privatise now and we have to make the painful reforms that were put under the carpet.
Carmel Cilia
Mar 14th 2010, 14:37
If what prof Scicluna say is correct and I have no reason to believe otherwise then our prime minister either was not told the truth by his advisors or else he deliberately is misleading the nation. I am bound to think that our prime minister would not dream of misleading his people so his advisors are to blame. In these circumstances the prime minister should name them blame them and shame them. Anything less is not appropriate in the present international financial circumstances.
J Martinelli
Mar 14th 2010, 13:39
Doom and gloom are sure ways of helping a fragile economy recover, Prof. Scicluna!
You are just an extension of the Labour Party seers who are experts at getting economic forecasts consistently wrong Keep their records intact!
Is that what the other 'economist' (Joseph) asked you to say?
Yes, yes I know, two or three successive quarterly positive economic indicators are required before one can say that the economy is out of recession. Well, one quarter down and two to go. So, your last sentence is no new revelation!
Steve Sant
Mar 14th 2010, 13:31
Of course Malta still in a recession, with the Banks holding back, Bonds that seem to be the only safe investment, its going to be at least till the end of the year for Malta to come out of this recession. There are too many factors that suggest the recession is still with us, and no politician will change that. Mind you, its the duty of our Ministers to create a favorable and stable economy. By talking about it and yet ignoring the vast majority of problems by brushing them under the carpet, denying they exist or being arrogant about them does not help. You need to help local economy and the common citizen tax payer to get the economy out of the hole.
J Micallef
Mar 14th 2010, 13:09
It looks that he recent good news for Malta is a very bitter pill for the MLP.
L. Cutajar
Mar 14th 2010, 12:59
Ghalfejn l-MLP dejjem jaraw in-negattiv biss. Ejja nharsu x'nistaw naghmlu biex nimxu l-quddiem u mhux kif iridu jew ahjar jixtiequ l-MEPs laburisti ghall gwadan politiku taghhom.
Albert Chetcuti
Mar 14th 2010, 12:27
This is not the same as saying that despite having come out of the recession we are still in a human recession as declared by Joseph Muscat yesterday. Can the LP not even agree between them what is the real situation. I am more inclined to believe Prof Scicluna though as he is the economist and Muscat isn't.