Is it a matter of poor reporting or did the Prime Minister not know what he was talking about?

During the GRTU’s Business Performance Survey Conference, the Prime Minister was reported as stating that “when contraction (in economic growth) lingers for two consecutive quarters, it is deemed a recession” (TMID, 17 December). In which case Malta must already be in one! Precisely the opposite to what the PM endeavoured to emphasise.

It is negative growth, not contraction, that signals recession.

A trading company that merely experiences a reduction in its profits is not in line for bankruptcy!

Karm Farrugia

Madliena