Nationalist Party calls for productivity-driven economy

The country must shift from an economy that grew through an increasing workforce to one driven by productivity, skills, innovation and higher added value, the Nationalist Party says.

"The objective should be clear: a more productive economy, more competitive businesses, better wages and a higher quality of life for Maltese and Gozitan families," PN spokesperson Darren Carabott said on Friday.

Carabott noted that as wages and labour costs continue to rise, Malta must ensure that the value created per hour worked rises with them, calling this "the foundation of an economy capable of sustaining increasingly better wages while maintaining and strengthening its competitiveness in international markets."

He acknowledged the recent Fitch Ratings, which affirmed Malta's A+ rating with a stable outlook, however arguing that economic success shouldn't be judged on growth figures alone. He said success must also be measured by how much more productive workers and businesses have become, how many quality jobs are created, how much real wages rise and, above all, how far that growth improves people's quality of life.

Carabott pointed out that in recent years, much of Malta's economic growth has been sustained by a sharp rise in the number of people in the labour market, including foreign workers now contributing across various sectors.

The Nationalist Party's proposed next step is for Malta to create more value from every job, every business and every hour worked, gradually reducing growth's dependence on a continuous rise in the number of workers. The party maintains its position in favour of establishing a Population Levels Authority, alongside a Population Levels Plan for Malta, drawn up with input from experts and setting out the actions needed for Malta to change course.

Carabott said greater productivity would allow a business to grow without increasing its workforce at the same rate, offer better wages while remaining competitive, create more quality jobs, and let the economy grow without the same growth automatically putting more pressure on infrastructure, traffic, housing and services.

The Opposition believes productivity should be a key part of Malta's economic policy, requiring an environment that encourages investment in technology, digitalisation, and automation. It emphasises innovation for growth and international expansion. There should be a stronger link between education, training, and the economy—improving workers' skills, preparing future generations, and normalising lifelong learning.

At the same time, Carabott said Malta must be more ambitious in attracting and developing economic activities that bring higher added value, greater knowledge and quality careers.

"Productivity should be the bridge between economic growth and a better quality of life," he said. "When a worker is more productive, there is greater scope for better wages. When a business is more productive, it can compete, invest and grow. When an economy is more productive, it can create greater wealth without having to depend to the same extent on a continuous increase in the number of people."

Carabott said Malta could have started this transition earlier, after years of growth driven by numbers, and argued that the country must not waste more time building its future economic model.

"Malta should aim for a better economy, growing through knowledge, skills, innovation, technology, and enterprise. Businesses thrive by becoming more productive and competitive, workers earn more through increased value, and success is measured by how growth improves Maltese and Gozitan lives," he said.