Finance minister Edward Scicluna today raise doubts about the methodology used for past calculations of Malta’s Gross Domestic Product (GDP)

Addressing a meeting at the National Statistics Office (NSO), Professor Scicluna pointed out that small agencies like the NSO are at a disadvantage when it comes to having the necessary know how and expertise.

Prof. Scicluna said that there are weaknesses in the reliability of GDP data. Giving a practical example, he said that the different ways in which inventory stock-taking is done can lead to variations of up to 1% in GDP.

The finance minister explained that revisions of past GDP data routinely occur, citing the example of America. 

He said that the European Union is placing emphasis on the quality of “upstream data,” namely data given by the government to the NSO, which requires a code of conduct in order to ensure the quality of the data provided.

He promised that access to data will be made more user friendly, and the burden placed on entrepreneurs will be lessened.

The finance minister also pointed out the need for an independent body to sign off on the governments annual budget forecasts. He said that for this year’s forecasts, the Auditor General will sign off on the projections.

During the press conference, Prof. Scicluna welcomed the newly appointed members of the Malta Statistics Authority, which will be chaired by Albert Leone Ganado, an academic.

The finance minister explained that the board is largely made up of technocrats, but it also has two outside representatives, one for the Unions and another for employers.