‘An evergrowing economy is the foundation of everything,’ Abela says

Malta's current economic model has drawn criticism locally for years. Some concerns were echoed by the International Monetary Fund last week, as it noted that the current labour-driven economic model “is reaching its limits due to infrastructure constraints, population density, and tight labour markets, underscoring the need for a strategic pivot toward productivity-driven expansion.”

He compared Malta’s economy with that of its European neighbours, which he described as struggling to preserve its basic necessities. 

Abela said that government will enter discussions with social partners to improve maternal, paternal, and parental leave. On remote working, he stressed that this doesn’t necessarily impact productivity negatively, as he noted examples of when productivity improves when working from home.

Abela brushed aside the “doom and gloom” he associated with the scepticism that followed government’s announcement to regenerate the Grand Harbour. The latest plans are the third such attempt by the Labour administration since 2013 to regenerate the inner part of the Grand Harbour, known locally as Il-Menqa.

The Prime Minister was also asked about talk of inducing an economic slowdown which he dismissed, stressing that if such a slowdown occurs, all the discussions on improving the quality of life locally would be obsolete.

To ease the minds of those preoccupied with the emphasis on economic growth, Abela said that government will no longer measure success by looking at GDP, but by looking at families’ wellbeing.