The Union Ħaddiema Magħqudin yesterday said it was worried about the economic forecast for 2009 and 2010 and had asked for a meeting with business leaders.

The union pointed to the recent statistics showing relatively high inflation, growing unemployment, deficit and public debt, coupled by a slump in economic growth foreign direct investment.

Social tensions would find fertile ground in these scenarios, the union said in a statement, pointing out that most of Malta's trading partners have entered a recession.

In fact, the comments by the union come as the EU's statistical arm Eurostat confirmed that Malta itself entered into a recession in the last quarter of 2008.

The Central Bank, in its annual report, revised its GDP growth forecast for this year to between 0.5 per cent and 1.1 per cent - a sharp contrast to the government's prediction in last November's budget of 2.5 per cent. The union said it would work to raise national awareness about the situation and make sure decisions were well thought out. To this end, it has asked to meet the Chamber of Commerce, Enterprise and Industry.