Finance Minister Edward Scicluna today said the country’s strong growth had implications, as it could put pressure on the country’s infrastructure.

Addressing a pre-Budget meeting with social partners, Prof. Scicluna said these infrastructural concerns needed to be tackled, as they could eventually lead to a slowing down in economic growth.

He said it was in the government’s interest to invest in the country’s infrastructure, as it was an investment that yielded more growth.

The reduction in debt would give future governments more breathing room

Prof Scicluna told the members of the Malta Council for Social and Economic Development that inflation stood at around the 1% mark, and there were no indications that it would creep up past the EU’s average. He said there were no concerns about wage inflation at this point either.

Malta’s unemployment rate was low when compared to European and global averages, he said.

The minister said general government debt was projected to fall below 50% of GDP in 2020, noting that the reduction in debt would give future governments more breathing room.

He said conservative projects by the Finance Ministry showed that the government’s surplus was expected to stabilise at 0.5% cent in 2017 and 2018.

Statistics showed that social security contributions in Malta were among the lowest in the EU.

Prof. Scicluna also said claims that foreign investment was on the decline were simply not true.

European Affairs Minister Helena Dalli highlighted that the government’s pledge to give workers back public holidays falling on weekends would be a priority for the legislature.

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