While Malta’s general economic prospects may be positive, the current realities in certain sectors of the economy are of concern, particularly the fact that industrial output and exports are down, the Nationalist Party said today.
Shadow Minister Mario de Marco and spokesman Robert Arrigo said statistics by the National Statistics Office (NSO) showed that industrial production in December 2014 went down by 3.6% when compared to December 2013. This was not a one off decrease, as statistics confirm that since March 2013 to December 2014, industrial production has been decreasing constantly each month, with the notable exception of only three months.
Other statistics published earlier this week by the NSO showed that exports from Malta have dropped by €720 million in two years. This is equivalent to a 16% drop.
"Any commercial businesses that sees its sales dropping by 16% would be justifiably worried. This decrease can have a huge impact on employees’ income," the PN said.
It also pointed out that Eurostat had reported that whilst retail trade had increased across Europe, Malta was one of the few countries that registered a drop.
A separate survey by the GRTU showed that 40% of members experienced a drop in sales.
"It is unfortunate however that the government is refusing to acknowledge that something is amiss in these sectors focusing its attention on other areas of the economy that are performing well."
The PN said that while it welcomed the European Commission’s report forecasting a positive economic future, it was concerned on the present situation being faced by industrialists, business owners and families alike.
"The weak performance of the retail and manufacturing sector has the potential of affecting the income of thousands of families. It is therefore not surprising that personal income is topped the list of concerns in a scientific survey carried out amongst the Maltese population. It also explains the warning issued by the Forum of Maltese Unions that economic wealth is not being felt by the workers," the party said.
It reiterated its call for a serious and open discussion on the state of Malta’s economy.
GOVERNMENT EXPLAINS
In a reaction, the government explained that of the drop of €720 million in exports, €430 million were linked to fuel. Malta did not produce fuel but trade existed only on the basis of one company which a minimal local presence.
As for the drop in exports of electronics, this sector was also dominated by one company.
Without these two, exports were actually up by €17 million over the past two years.
Furthermore, exports of services had grown to the extent that for the first time, Malta had a positive current account in international payments.
Furthermore, in December, according to Eurostat figures, retail trade was up 4.4% from December 2012, when the EU average was 2.7%.
The reality was that as confirmed by Eurostat research, business optimism Malta over the past eight months was the highest in Europe.
Eurostat had also just praised Malta for the way the economy was forging ahead.