Economic growth slipping compared to the EU's

The Maltese economy is slipping when compared to the European average, while prices locally are rising faster than in the EU, the PL spokesman on economic affairs said.

Charles Mangion said the Update of Stability Programme 2011-2014, published by the Ministry of Finance, showed how economic growth in Malta was projected to be slower than in Slovenia, Slovakia, Luxembourg, Finland, Estonia and Cyprus.

GDP per capita, which had fallen to 81% of the EU average in 2009 would, as a result, continue to fall.

At the same time, the price average in Malta had risen to 75% of the EU average from 57.5% in 1995.

The Maltese, Dr Mangion said, were seeing an erosion of their purchasing power as the cost of governemnt services and taxation increased. Among them were the utility costs and higher excise duties on fuels, cement and beer.

It was no wonder, Dr Mangion said, that price inflation in Malta was consistently among the highest in the EU and exceeded wage inflation.