Economic growth is coming from all sectors of the economy – Edward Scicluna
Malta’s economic growth of 6.6% which was registered last year came from all sectors of the economy. This included the services sector which increased its contribution to the economy by almost €684 million. The industry increased its share of the GDP by €88 million and construction saw an increase of €37 million.
Last year’s economic growth was at the same level of 2017 when the revised statistics show that Malta’s economy grew by 6.7%. The increase in economic activity saw an increase of €332 million in salaries (7.2%) and an increase of €525 million in profits (9.7%).
During a press conference, Finance Minister Edward Scicluna said that these statistics continue to surprise because they are even better than what was forecast by international economists and the Government. He noted that the economic activity of the last three months of last year was the strongest and Malta had the greatest economic growth among EU countries which have published their statistics to date.
Prof Scicluna said that this economic rhythm earns more revenue for the Government by means of which it can sustain various initiatives.
“Government revenue is buoyant and is at par with economic growth so this permits the Government to do things which it could not do before. For example, free child care and free transport are a result of the fact that Government revenue is healthy.”
Prof Scicluna said that in the last five years, the Maltese economy has had an average economic growth of 7.1% while in the previous five years, the growth was at just 2.1%.
Asked by TVM about the fact that international agencies had warned that the country’s strong economic pace cannot be sustainable long-term, Minister Scicluna said that he is not worried about this. He added that foreign economists do not always understand the dynamics of the economy which is open and diversified. Minister Scicluna said that the important thing is that Malta has an economic growth of at least 5% which is equal to the most developed economies in the EU.
Maltese economy grows by 6.6% in 2018