I refer to Michael Briguglio’s reply (July 11) to my letter ‘Economic performance’ (July 9). 

Assuming I were to accept his argument that a 27 per cent (€74.8 million) increase in the construction industry’s gross value added is not sustainable, then we would also have to conclude that a 77.6 per cent (€289.8 million) increase in the information and communications industry’s GVA is unsustainable, as would be a 127.1 per cent (€828.7 million) increase in the professional and scientific industry’s GVA. Likewise, a 43 per cent (€44.8 million) increase in food production. Most of the economy would become unsustainable, according to this logic.

He adds that we depend “too much” on factors outside our control. Malta’s economy depends on trading with the outside world. Whatever new sectors can be generated will depend on exports for their survival and will therefore be outside our control.

He mentions e-gaming and the risk of potential tax changes. But are the exports of electronic goods and tourism any less susceptible to potential competitive changes?

He then mentions the “imbalance” that construction is causing in the banking sector. The Central Bank’s interim financial stability report clearly states that the property price-to-income ratio has remained below the long-term average and that the domestic banks’ non-performing loan ratio has gone below the eurozone average, largely due to a contraction in the construction’ industrys NPL. A Central Bank  paper by Brian Micallef shows that the recent property price increases are a recovery from the slowdown and trough between 2007-2013. Finally, a KPMG 2017 study states that there is no construction bubble in Malta.

As to the temporary nature of the sale of passports under the IIP scheme, I think this is already being addressed by the development of new sectors such as those of cryptocurrencies and blockchain.