The annual report published by the Central Bank of Malta confirmed that in spite of the government’s boasts, the country’s rate of development was slower when compared to that of competing countries, the Malta Labour Party deputy leader for parliamentary affairs, Charles Mangion said yesterday.

The report stated that the deficit in the current and capital account during 2006 rose to nearly six per cent of the gross domestic product from 3.6 per cent the previous year. This showed that the difference between what Malta earned from exports and what it spent on imports was growing.

The low rate of economic expansion was also confirmed by the fact that the per capita gross domestic product was going down when compared with the European average. In 2000, it was 78 per cent but in 2006, it fell to 72 per cent, Dr Mangion said.

Malta had also regressed in terms of the education provided to workers, and in spite of investment in education, the rate of students leaving school without adequate skills was among the highest. Malta also had the highest rate of early school leavers and the lowest number of graduates in science and technology.

The report quoted official statistics that confirmed that investment in 2006 was one per cent lower than a year earlier, Dr Mangion said.

Profits from the financial and construction sectors were on the increase, but income in real terms for workers in these industries was in decline. The increase in wages dropped from 1.5 per cent in 2005 to 0.4 per cent in 2006.

The country needed a plan to face these challenges, Dr Mangion said. Sectors such as tourism should receive all the attention possible for them to grow. There should also be heavy investment in education to ensure that Malta remained competitive.