The International Monetary Fund (IMF) assessment on the Maltese economy speaks of an economy that is growing but also of an economy that is facing a number of threats, the Nationalist Party said in a statement today.

The IMF in particular makes reference to: 

• the possible negative effects of Brexit on the Maltese economy; 
• the economic and financial risks arising out of the rapid increase in property over the past months;
• the need for more responsible and sustainable public spending;
• the delay in Air Malta’s restructuring;
• Enemalta’s elevated government-guaranteed debt;
• the need to incentivise long-term savings and for further measures to align the effective retirement age with life expectancy;
• challenges being faced by the local banking sector;
• the need to bolster further the resilience of the private sector;
• the need for ongoing vigilance of the financial sector particularly in view of the demand for the Individual Investment Programme (IIP) and of the importance played by the financial services sector and gaming sector to the local economy.

None of these points were made by the DOI which was, again, selective in its report, seeking to hide from the public the full picture of what is being stated by the IMF, the statement signed by PN deputy leader and shadow minister for finance Mario de Marco, and shadow minister for the economy Claudio Grech, said.

These points were raised by the Nationalist Party over the past months. Our economy could very well be skating ahead but one needs to constantly check on the thickness of the ice beneath our feet. It is clear from both the IMF and Central Bank’s reports that there are cracks in the system which need to be addressed while there is still time. Left unchecked, these cracks could lead to very serious consequences and threaten the sustainability of our economy. 

The Nationalist Party is again calling on government to take heed of these challenges and of the challenges highlighted by the Central Bank of Malta rather than focusing solely on the selective economic indicators. The Nationalist Party furthermore refers to its policy papers, in particular to the two pre-budget documents, to the policy paper An Economy for the People and the Policy for Retailers, containing hundreds of proposals that can help boost the country’s economic performance even further. 

The Nationalist Party reiterates the need for a stronger focus on small economic activities, in particular to start-ups and innovation-driven enterprises. The future of our economy cannot be sustained merely on the back of consumption trends but needs to be based on substance and a strong local SME environment.