When, just over a month ago, Standard and Poor’s downgraded Malta’s long-term credit rating, the two main political parties blamed each other for the move but the furore died out in no time as they were more interested in matters that could make more immediate impact on the electorate than financial figures.

What is ironic is that while the life of many people in mainland Europe is dominated by their struggle to make both ends meet under the weight of a raft of austerity measures that their governments had to impose to restore financial order, in Malta the discussion takes a completely different course.

With an election just round the corner, this is quite understandable. But it is only so because the economic situation is starkly different to that in countries where governments had to resort to drastic cost-cutting measures to bring their deficits down.

Had unemployment been anywhere close to the levels being experienced by some other countries, such as Spain, for instance, the political discussion would have most certainly taken a different angle.

As the election campaign sinks deeper into the political mire, the European Commission’s latest set of economic forecasts for Malta are unlikely to reach the forefront of the political discussion, let alone be analysed at any meaningful depth.

Both the Nationalist and the Labour parties are far too busy fending off accusations against each other over scandals or impropriety to spend time on the Commission’s latest report.

Yet, the report is most favourable to all in Malta – not just to the PN. It confirms that the island has managed to move ahead in the face of economic turbulence in countries of direct economic interest to Malta. Unfortunately, when Labour economic analysts discuss the island’s performance they often tend to downplay good results.

There are a number of difficulties that have yet to be faced but, while it is wrong to inflate progress or, worse, fall into any degree of complacency, it is not out of place to express satisfaction at a favourable outcome, more so when it comes in the wake of Standard and Poor’s downgrading of Malta’s rating.

Briefly, the European Commission expects Malta to post above-average results, with the country clearly gaining pace as its economic outlook “brightens”.

According to its forecast, Malta is this year expected to have an economic growth rate of 1.5 per cent, improving to two per cent next year. These growth forecasts are lower than those made by the PN and PL but, compared with those in the euro area, Malta’s rate is the second best among the 17 eurozone members.

Particularly encouraging too, especially in the context of the situation in Europe, is the Commission’s forecast on employment. Brussels is projecting above-average growth in the creation of new jobs and a further reduction in unemployment. In its view, job creation is projected to remain robust throughout the forecast horizon, significantly outperforming the euro average area.

On the other hand, the budget deficit figures forecast by the Commission are higher than those made by the Government. The Commission also forecasts an increase in the national debt for this year, falling to 73.6 per cent next year.

All in all, Malta has had a creditable performance and the forecasts suggest continued improvement.

Whichever party gets elected on March 9 will do well to ensure that this country does not lose the rhythm it has so successfully picked up.

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