Economic growth slowed in the second quarter but was still among the highest in the EU.

Between April and June, the Maltese economy generated almost €1.9 billion: a growth of 2.9 per cent over the same quarter of 2013, according to the National Statistics Office.

However, this was lower than the four per cent registered between January and March this year.

In the same period of 2013, the Maltese economy had grown by 4.4 per cent.

According to the latest statistics issued by Eurostat, the highest rate of growth was registered by Hungary (3.7 per cent), followed by Latvia (3.5 per cent) and Poland (3.2 per cent). The EU average was 1.2 per cent.

The NSO said Malta’s economic growth was generated by public administration and defence, education, health, wholesale and retail, transportation and storage and accommodation and food services.

This was the result of considerable increases in private consumption and investment

The contributions of manufacturing and utilities were down.

Welcoming the latest results, Finance Minister Edward Scicluna said: “This successful and encouraging rate of economic growth was the result of considerable increases in private consumption and investment.”

Developments in the second quarter confirmed that the strong performance registered in the first months of this year was being sustained, he added.

The Nationalist Party said that the latest statistics showed most of the economic growth was a result of increased government spending – a worrying aspect that needed to be tackled.

According to PN spokesmen Mario de Marco and Tonio Fenech, the statistics point towards large increases in public spending on wages as a result of more people recruited by the government.

This raises questions on the sustainability of the island’s finances in the long run.