One of the features of the budget debate, that we have just been through, and will continue having to go through for a few more days, is the performance of the Maltese economy. The statistics published by the NSO are showing a strong improvement on past performance, GDP in real terms is growing, investment and employment are increasing, and new jobs are evidently being created.

The retort to these claims has been that somehow, irrespective of what the statistics are saying, the public at large does not seem to be feeling the benefits of such a good economic performance and, as such, the statistics are being doubted.

I believe that when discussing issues like standard of living, one cannot generalise. This is particularly so in the case of Malta which is continuing with the process of economic transformation and, like any other process of change, there are losers and there are winners. Moreover, what constitutes an acceptable standard of living for a person tends to change with times because his or her own requirements change and because of the comparisons that he or she makes with others. The so-called "feel good factor" tends to confound all or some of the statistics.

However, we cannot ignore what the statistics are saying and one such example is the short-term monthly indicators, which may not get much publicity but which are still indicative in what goes on in various sectors of the economy. These monthly indicators provide information on the business cycle and cover turnover, wages and salaries and employment. The sectors of the economy covered by this set of statistics are quarrying, all manufacturing sectors and the water and energy sectors. One needs to appreciate that these sectors make up more than a quarter of our GDP.

Overall, the statistics show that turnover for the month of August was nine per cent higher than it was in August last year, employment was 0.2 per cent higher, gross wages and salaries were 10.2 per cent higher, and hours worked 6.4 per cent higher.

What these figures keep on showing is that these sectors, most of which are highly exposed to international competition (the only exceptions are quarrying, energy and water), are continuing to show great resilience in spite of adverse market conditions and in spite of an adverse cost situation caused by the price of oil.

Unfortunately, we do not have data on volumes produced but one may be right in assuming that prices have actually gone down when compared with the previous year (this has been the trend in the recent past). Thus the indication is that, in real terms, activity in these sectors has increased by more than what the turnover figures show. The increase in gross wages and salaries by more than the inflation rate and the hefty increase in the number of hours worked tend to give credence to this line of reasoning.

One also needs to put things into a historical perspective. We are talking about 2006 figures, that is two years after Malta became a member of the European Union. Instead of having the economic disaster that some "wet blankets" were predicting for us, we have managed not just to hold our ground but to do better. This brings us back to the issue of statistics and economic performance and how this permeates within Maltese society. My work brings me in touch with employees across most segments in manufacturing. Their feedback has been consistent - never have they been so busy, never have they been through changes as they have in these last couple of years.

There are some segments that are still going through a process of transformation, which has at times meant a loss of jobs. We have also had situations where companies have closed down. These occurrences have to be accepted as part of everyday life. The important thing is whether the economy can generate other jobs to replace those being lost. The data shows that the answer to this question is a definite yes, thereby indicating that, in terms of the business cycle, the short-term monthly indicators are showing a significant upswing.

The significance of this upswing increases when one notes that this was not achieved thanks to any government investment, but thanks to private sector initiative. Thus it is an upswing that is market driven, export led and all generated by the private sector. Claiming that this is not economic wealth is unfair to those employees and investors operating in these sectors.