In his first interview with independent media since securing a historic re-election victory last month, Prime Minister Robert Abela told Times of Malta that there is a price to this newfound wealth and people cannot expect to have it all. The reality is that people have money in their pockets, as evidenced by the number of new pleasure boats that have been purchased. In his modest opinion, the greatness of the Labour government is that many things that were previously considered luxuries have now become affordable to many people.

Abela bragged that Malta's society went from a situation in 2013 where people were begging for jobs that paid €1,000 monthly to a situation where today they can afford to buy a new car, a modest boat, and maybe even go on holiday abroad twice a year. Credit and kudos are earned, since, notwithstanding its limitations, Malta has made notable strides, particularly through its previous role as a non-permanent member of the United Nations Security Council and as Chair-in-Office of the Organisation for Security and Cooperation in Europe (OSCE).

Beyond our shores, shall we now comment on how President Donald Trump has a wildcard in the economic outlook, especially because of his campaign policy to impose high and broad tariffs on imports, especially those from China? However, economists believe that heavy tariffs, in line with Trump's promise, could drive up prices for all kinds of products, push inflation, and drag down the world economy.

Sustainable development can be given an economic definition: one that makes a country wealthier, better educated, and healthier. Back to Malta, shall we assert that if this is the case, then why do locals vociferously complain about excessive local property development, State cronyism, and its impact on society?

Question: Is it true that rapid development has rendered Malta more beautiful since Independence? The answer is yes, if development was a force for sustainable property expansion. The converse is that it is harmful and undermines the quality of life. The government and others often portray NGOs and activists as being opposed to development, using broad and sweeping generalisations. It is naïve, at best, to argue that activists are against growth that betters society as a whole and makes it more prosperous.

The recent approval by the PA to bulldoze the majestic British barracks (a national heritage site in Gozo) at Fort Chambray speaks volumes about how greed has been allowed to cloud our virtues. Again, other examples follow, such as building 20 flats in Gozo on the Ġgantija buffer zone.

Populists embrace a definition of higher growth which targets rises in gross domestic product, which in turn reflects a higher level of economic activity and fake prosperity. Our political creed is primarily based on numbers - cars, pleasure boats, tourists, building permits, hotel rooms, property sales, income, and so on - all measured in monetary terms (not their harmful effect on ecology, air purity, power cuts, sewage in some bays, and over-tourism of the cheap variety).

Sociologists warn us to be cautious. Another headache for future productivity is our low fertility index and ageing population, both of which lead (in different ways) to increased TCNs immigration. Notice how Western economies have a combination of labour output spiced with a large number of low-wage third country nationals. In Malta, a heightened policy to import TCNs as low-cost labour is being extended to reach up to one in six of the population.

Castille augurs that the business community, now facing acute staff shortages, can alternatively engage the skills and abilities that TCNs offer, as this is the only way to address unfilled vacancies. Naturally, unions advocate for fair and inclusive employment practices. In the private sector, as future AI improvements in productivity flourish, a smaller labour force may, in the near future, be found to be necessary.

The message from PM Abela harkens us to continue ratcheting up exports. On the positive side, all rating agencies have congratulated us on reaching a high mark in commercial success. This reads like sweet music to the Labour Party, now enjoying a galloping GDP exceeding €24 billion.

Watch how, prior to the May snap election, political apologists attracted the attention of the party faithful with many promises. These include Business Development, Business Start, Innovate - Innovation Aid for SMEs, Rent Subsidy Scheme, Research and Development, Skills Development, Smart and Sustainable Investment, Start-Up Finance Scheme, Micro Invest, and the Get Qualified scheme (not forgetting a super €1,000 annual tax-free bonus).

The government cautiously projects that national debt will reach €14 billion by the end of the legislature, yet the business community disagrees, saying this is not sustainable unless future generations pull up their socks and start exploiting AI mechanisms and robotics, alongside the drive to work harder and do more with less.

George M. Mangion is senior partner at PKF