A report commissioned by the GRTU revealed that Maltese economy has not registered any growth over the past ten years. The report, carried out by an economist from the Department of Banking and Finances of the University of Malta Prof. Joseph Falzon, showed that in the past five years exportation of products and services decreased both in value as well as in shares from national economy.
The aim of the report was to give a picture how the Maltese economy is faring prior to the Budget speech next week.
The report also showed that over the past ten years the earnings and salaries of employees increased when the rate of inflation is taken into consideration. In turn, then growth rate of global profits for enterprises and businesses was half that of the inflation rate.
Prof. Joseph Falzon’s analysis also showed that the added value for each person employed increased slightly more than the inflations rate. The growth of the added value for every person employed in the sectors of manufacturing, hotels and restaurants and establishments among others, was of a lot less than that of the rate of inflation.
Speaking to PBS, Prof. Joseph Falzon said that one of the conclusions of the survey is that although local sellers and local sectors which produce goods can increase consumer prices, other sectors such as those of manufacturing and tourism cannot raise prices so easily because they are facing direct competition from Europe, Africa and Asia.
In turn, GRTU Director General Vince Farrugia said that said that the Chamber released the results of the analysis prior to the budget so that the focus is not only placed on the budget’s shortfall but also on holistic economic deficit.
Commenting on the result of the analysis, the Director General said that “Taking into consideration the part ten years, these figures say that in real terms Maltese economy is not growing”. Mr. Vince Farrugia also said that if necessary heads of employers, heads of employees, heads of government as well as heads of the Opposition are to join forces to issue a national plan to strengthen economy and bridge the gap between local economy and that of the rest of the European Union.
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