The Finance Ministry said Opposition leader Joseph Muscat had not produced any facts to back the claim he made that the economy shrank by nearly five per cent in the first quarter.

Dr Muscat's claim contrasted with figures released by the National Statistics Office, which showed the economy shrank by 3.3 per cent.

He based it on calculations that did away with the government's outlay of €14 million for shipyard workers' retirement schemes.

The ministry said the global economic crisis was affecting all countries, but the government's decisions, including the euro's adoption, were shielding the country from the worst consequences.

It yesterday accused Dr Muscat of exaggerating matters for political gain and said this was a dangerous tactic which could sow uncertainty among investors, more so as Dr Muscat had not backed up his claims.

The ministry said the country should be uniting to face these difficult times, but the Opposition opted to play the partisan game.