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Country still in recession, Labour MEP insists

Labour MEP Edward Scicluna said yesterday Malta was not out of recession at all despite claims by the Prime Minister.

He said: "Every family in Malta wishes to believe that in the final quarter of last year the country did indeed come out of recession. Unfortunately, this is not yet the case.

"Between the last quarter of 2009 and the last quarter of 2008 in nominal terms, 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 and compensation of employees fell by €14 million," Prof. Scicluna said.

In contrast, gross operating surpluses went up, rising by €33 million. They were made up of an increase of €37 million in operating surpluses of banks and other financial intermediaries as well as a fall in €4 million elsewhere in the rest of the economy.

Malta had to wait a bit longer before it was out of recession, he noted.

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lgalea

Mar 15th 2010, 12:41

It appears that it is you who is not credible Mr Cauchi. A very simple example for you to ponder. Say your economy decreased by 10% and then it expands by 0.1%. Technically you are out of recession because your economy is no longer decreasing. Are you in the same position before your economy went into recession? I hope that this example is simple enough for you to understand. Apart from this, Profs Scicluna gave the figures for why Malta is still in recession. Do you have other figures Mr Cauchi?

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