Updated - Figures confirm economic slowdown - PL

 Updated - Adds PN reaction - Latest economic statistics confirmed a slowdown of the economy and the need for the government to ensure that Malta's competitiveness is not eroded any further, the PL's spokesman on the economy, Charles Mangion, said.

He noted in a statement that figures for the first nine months of this year showed that productive investment declined by almost 27% in real terms compared to last year, while exports of products and services were down by more than 11%, at almost €160 million.

Such figures, Dr Mangion said, confirmed why Moody's had given a negative outlook for Malta.

Such figures, he added, also showed how the government needed to safeguard Malta's competitiveness, not least by removing or reducing government-induced costs such as the utility bills and bureaucracy.

He called for better results in the education sector and said that the government needed to safeguard Malta's advantages, particularly by retaining the tool of tax policy and not allowing its transfer to Brussels.

PN REACTION

In a reaction, the PN said that for three years, Labour kept mum and never once made a serious, and concrete proposal on how Malta could continue to create jobs and enhance its economic growth.

It said that hand on heart, Charles Mangion should have the decency to admit that: Last year, whilst Europe experiencing a sharp drop in foreign direct investment, (19%), Malta registered a significant 37% increase. Cyprus had a 15% drop. This was the country which Joseph Muscat wanted the government to adopt as its economic model; For Malta Enterprise, this year was the best year since 2007 – 35 new projects were given the green light – an impressive €145million in investment, and the creation of 700 new jobs; in three years;

Despite the worst economic crisis - post World War II - unemployment went down by 1.5% (from a total of 6,655 in September 2010 to 5,544 in September, 2011).

Malta also had the fifth lowest unemployment rate in the EU; 6.2% when compared to the EU's 9.7%

"Of course, much more needs to be done to ensure that Malta continues to weather, successfully, the economic storm and financial meltdown. One wrong decision, and we've had it," the PN said.

"Lawrence Gonzi's sound economic policies, and the peoples' resilience, were, and remain, the main ingredients thanks to which Malta is managing to navigate successfully through the fierce waves caused by the economic storm."