The latest batch of published statistics about economic performance during the first quarter of the year again confirmed the optimism that has gained ground. The rates of growth in a number of sectors have stayed very encouraging, which is making the government's financial commitments easier to manage.

However as always, we need to keep our feet on the ground. Two aspects of the data surely need to be monitored.

In real terms imports and exports of goods have both declined, as has industrial production. It is true that trade in services compensated for this. However I disagree with those people who claim that we should discard the idea that there is a future for industry in Malta. As there was scope for industry in the past, so should there be in the future.

Secondly, a drop in gross capital formation was registered. Economic growth that is being led by consumption while investment fails to take off, could become risk prone and get blown away by the first strong winds that arise.

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House prices

Exceptionally, for a while there were complaints that sales had slackened in the Maltese property market.

Then there were whispers about how things were coming back to "normal", though it made sense to take care and not believe every story that came one's way.

Now it seems that reports about how Maltese house prices had tightened were not rumours but fact. The government scheme which helped first time buyers contributed to make prices firmer. When more buyers enter the market, it is obvious that price pressures will multiply.

Still the very fact that the economy is growing provides a more powerful explanation for what is going on. Citizens do not simply share a perceptionthat they are doing better. It is a reality today that their situation has improved. So the idea of buying a house becomes more attractive.

Soon now we'll be hearing about this development in reverse: buyers, especially young couples will be complaining that prices have become too high and they can afford them less and less.

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Boycott

Strange assessments have been reported regarding the embargo that the Russians imposed on EU imports in retaliation for the sanctions that the Europeans inflicted on them because of the Ukrainian conflict. The fear was that both sides would suffer badly as a result of this tit for tat. Not so, according to reports.

News from Russia has been that factories there which had been squeezed by European imports got a boost when these were embargoed. They are already winning back their share of home markets, having learnt the lesson that they need to improve product quality. As their sales rise, they are planning new investments.

European news reports on the other hand claim that not only have European exporters not lost ground globally because of their loss of the Russian market, but they have overall increased their sales by diversifying to other world markets.

There must be some point to the slogan that all's well that ends well.