Economic growth ‘reaches new heights’ – Finance Minister

The Maltese economic growth reached new heights, as it grew by 5.2 per cent year-on-year while nominally it expanded by 7.3 per cent, figures published by the National Statistics Office show.

According to the Ministry for Finance, such growth rates are almost four times those registered in the EuroArea where economic growth averaged 1.2 per cent.

“Based on the latest provisional data from Eurostat, Malta is not only the fastest growing economy in the European Union but is showing the strongest growth since the global crisis,” the Finance Ministry said.

The ministry said it was a first that positive growth rates were registered in all economic sectors, including manufacturing, which recorded a positive nominal growth rate of 4.7 per cent during the same period.

The professional, scientific and technical activities, administrative and support services activities sector and the real estate activities sector registered double digit growth rates.

Economic growth during the second quarter of 2015 was underpinned by sustained growth in private consumption and more significantly by a strong increase of 24.3 per cent in investment.

The former is indicative of the all-time record growth in employment and historically low unemployment rates recorded earlier this year as well as increasing consumer confidence.

The surge in investment reflects the investment in the energy sector and other private investments in new growth sectors.

The ministry said that the wealth created was being transmitted to the Maltese families with total compensation of employees increasing by €30.4 million or 3.4 per cent per annum. Business and firms also registered favourable developments with profits up by €107.4 million or 12.5 per cent growth over the previous year.

“The more business-friendly macro- and financial environment created by the Government is fostering the right macroeconomic conditions that, in turn, are boosting consumers’ and investors’ confidence in our economy,” said Finance Minister Edward Scicluna said.