‘Families not feeling economic growth’

Families were not feeling the effects of increased economic growth in spite of the government’s “euphoria” on the issue, according to the Labour Party.

In the first half of this year, salaries rose by just 0.1 per cent in nominal terms, which, when taking inflation into account, means salaries actually dropped by 1.1 per cent, PL economy spokesman Gavin Gulia said.

He added that, although the latest figures released by the National Statistics Office indicated salaries went up in the second quarter of this year when compared to the first, they had actually decreased in both quarters in comparison to the same periods last year.

Dr Gulia also noted that the NSO figures showed the banking sector registered profits five times higher than in the 2005-2007 pre-recession period. Another anomaly was the fact that it was now being reported that pay rises and profits in the construction sector were up by 7.8 and 14 per cent respectively in spite of an announcement made barely two weeks ago that such salaries dropped by five per cent, employment was down by 10 per cent and hours worked dropped by 12 per cent.

According to provisional estimates published by the NSO last Wednesday, GDP in real terms rose by 3.9 per cent in the second quarter of this year when compared to the corresponding period in 2009.

The NSO said GDP from the expenditure approach indicated that GDP at constant prices increased by 3.9 per cent.

Firing back at Labour’s accusations, the Nationalist Party said the economic situation called for cautious optimism, sound government policies, a resilient economy and a capable workforce.

The PN said 2,500 jobs had been saved, exports had increased by 35 per cent, tourist arrivals grew by 11 per cent and the deficit cut by €50 million.

These, it insisted, were good reasons why the country was heading in the right direction economically.