Latest data released by Eurostat today confirms that retail sales in Malta are continuing to shrink rather than grow, the Nationalist Party said today. This is worrying for the nation’s self-employed and raises concern on the consumers’ spending power. Like for like, retail sales in Malta during December 2014 fell by 1.4 per cent when compared to the same month of the previous year. Malta is singled out as one of the worst performing countries from the EU 28 countries which provided the data. Retail trade in the Euro area increased by 2.8% in December 2014 when compared to the previous year.
In a statement issued by deputy leader Mario de Marco and Robert Arrigo, spokesman for SME,s the PN said even more worryingly, if one had to exclude fuel and motor vehicles from the calculations, the drop in retail sales in volume would be even higher, reaching 6.5%. This puts Malta at the wrong end of the European Union league table in as far as retail sales is concerned.
It is unfortunate that government is refusing to even acknowledge that a problem exists.
Government is also being selective in quoting data, in its effort to paint an image that all is well. Quoting a recent NSO publication, Government abstained from providing detailed explanation that the reported growth in turnover by retail and wholesale sector is subject to artificially inflated prices of fuel, which according to the statistical classification feeds in both the wholesale and retail sector.
The Opposition reiterates its call for a serious debate on our economy and on public finances. It also calls on government to come up with concrete plans and actions to help those sectors of the economy that are seeing their competitive edge being eroded. Government should with immediate effect lower the price of petrol and diesel, which are currently fourth most expensive in Europe, to bring it in line with the European Union average.
PL reaction
Meanwhile in a statement, the Labour Party said that contrary to what the PN said the data issued by Eurostat did not include fuel prices. The PN, it said, has failed to carry out a basic analysis of the economic state.
The statement notes that the document states that “The index of the volume of retail trade measures the evolution of the turnover in retail trade, adjusted for price changes (deflated), i.e. the evolution of the total amount of goods sold,” meaning it excludes the price of fuel whatsoever.
The results achieved by Malta were higher than the EU average between December 2012 and December 2014. The EU index improved by 2.7% while Malta’s increased by 4.4%. As a result of the progress, jobs in wholesale and retail were increasing every month and now reached 12,780 from 11,969 under the PN (full-time jobs excluding vehicle sales). There has been an increase of 811 jobs full time (7%), and part time jobs increased from 6,324 to 7,290 – an increase of 966 people. (15%)