These days one cannot go anywhere without hearing about Malta's economic growth. Even the credit ratings and outside bodies such as the European Commission have been singing skyhigh Malta's praises.

Last week, we reported extensively, the Central Bank's Annual Report (unfortunately the only paper to do so) which also dwelt at some detail about Malta's economic situation and growth.

We refer the reader to last week's report or even better to the Annual Report itself on https://www.centralbankmalta.org/en/news/65/2017/4523 and to the Governor's presentation at the end of the report.

In particular, in the section entitled Employment increases further and unemployment reaches a new low, the second page has a telling graph under the title Employment by type and the role of foreign workers. The second graph in this subsection shows Increase in Gainfully Occupied Population by nationality.

Colour-coded according to the population segments, whether the increase is due to Third Country Nationals, EU citizens, and Maltese citizens, the graph shows us that from 2011 onwards there has been an ever-increasing influx of workers into the economy.

(See graph on top)

At first, in 2011, the annual increase in the gainfully-occupied population consisted mostly of Maltese citizens with a strong showing of EU nationals.

In 2012, as the economy dipped, the new Maltese workers dwindled to a trickle while the EU nationals flooded in, in great numbers, outnumbering by far the new Maltese recruits to the workforce.

The situation remained basically the same in the years to come, with the Maltese contingent growing to the 3,000 mark in 2015 and 2016, the third country nationals having their best year in 2014 but the huge surprise consists of the EU nationals who shot up to an extraordinary degree, amounting to some 5,000 in 2016.

This is what boosted the economic growth - foreign EU nationals flocking here and working here. We all meet these people - in shops, at restaurants, in places of entertainment. Italians, British, Spaniards, East Europeans etc.

So perhaps before we get big-headed and run away thinking we did the economic miracle, let us understand the miracle, such as it was, is the result of the influx of EU nationals, coming here because attracted by the island and by the opportunities but maybe also by the high unemployment rate in their own country of origin.

Here they settle and after a while get their families. Their salaries, except for those in the e-gaming sector and similar lucky sectors, are low by international standards but for those escaping unemployment in their countries are heaven-sent manna.

Finance Minister Edward Scicluna used to say, until a short time ago, that the recruitment of foreign nationals with their low wages dampens pressures for wage increases (by Maltese nationals). Translated into common parlance this means the cheap wages in Malta and the foreigners clambering for jobs keeps the Maltese workers from getting a higher wage or salary.