Issue link: https://maltatoday.uberflip.com/i/1545062
AMIDST the bustle of an in- tense electoral campaign, one could be forgiven for thinking that everything in this country is on hold with all eyes firm- ly on what each political par- ty is proposing. And yet, as an economist, four separate yet in- trinsically related news articles grabbed my attention. At the face of it, they are four rather unremarkable articles, exact- ly the type of stories that us economists love to read, living up to our stereotype as dismal scientists. Nonetheless, these news stories are extremely im- portant, not because of their sensationalism, but rather be- cause they provide unequivocal, objective confirmation of where this country is, what we have collectively achieved over the last few years, and where we're going. The first two stories relate to two separate, independent as- sessments undertaken by repu- table international credit rating agencies, namely Moody's and Scope Ratings. In both cas- es, the verdict is clear: Malta's economy remains strong, dy- namic and stable, outperform- ing its European counterparts and underpinned by robust private consumption, compet- itive exports and sound public finances. And why are these three elements so remarkable? They each represent an essen- tial facet of the Maltese econ- omy that cannot be taken for granted. Firstly, buoyant private con- sumption reflects both the level of disposable income available to individuals and families, as well as their confidence in the economy's overall performance and its ability to continue to sustain job creation and wage increases. Secondly, competi- tive exports in diverse sectors like tourism, financial servic- es and microelectronics show that despite rising global com- petition, Malta is able to hold its own. Thirdly, sound public finances are the bedrock of the country's economic sustainabil- ity and credibility, enabling us to weather the inevitable storms that come our way; a particular- ly impressive feat considering the government's continued subsidisation of fuel and ener- gy bills for Maltese families and businesses, and unprecedented tax cuts over the last few years. The best part, however, does not lie merely in the here and now; both assessments expect these economic conditions to remain stable and persist over the coming years, despite the avalanche of global economic uncertainties that continue to dominate proceedings. Con- sidering that several other EU member states were provided with a negative outlook by the same ratings agencies, our re- sults assume even greater im- portance. These are not elec- toral slogans or posturing; these are credible third-party inter- national assessments providing us with perhaps the ultimate rubber-stamp to certify that our economy is thriving and will continue to do so due to the sustainability and resilience of our economic infrastructure. Such stability and growth does happen by accident; it is a direct consequence of both intelligent economic governance and the ingenuity of our workforce and business community. Now, you may be thinking that while it is always nice to be told that the economy is doing well by external sources, what about the feeling on the ground amongst Maltese families? A perfectly understandable ques- tion, because in truth it is es- sential that there is alignment between what the impressive macroeconomic figures are tell- ing us, and what people are feel- ing and experiencing on a daily basis, since this ultimately will have a real impact on quality of life. And this is where the third news story comes into play, since it reports the results ob- tained from the most recent Eurobarometer survey that gauges people's views on a wide variety of relevant social, polit- ical and economic topics. The verdict is resounding: 75% of Maltese people believe that the economy is performing well, while almost 90% believe that their household's financial sit- uation is good. These results are extremely impressive, par- ticularly since respondents are not known to pull any punches during these kinds of surveys— for context, across the EU only 38% believe that their national economy is doing well. Crucial- ly, they point towards a Maltese population that is recognising the country's economic success and, more importantly, feeling the fruits of this success directly in terms of increased household income. The final, and most recent, news story perfectly sums up the gist of all three preced- ing reports. The much-await- ed Spring Economic Forecast just published by the European Commission. It shows strong economic growth, which is ex- pected to persist in the com- ing years, built on strong per- formance across sectors like gaming, professional services, finance and ICT, with robust public finances, low unemploy- ment and continued growth in real wages for workers and their families. All this will happen despite growing internation- al economic uncertainties and a general slowdown in growth across the EU. Malta's project- ed economic growth this year is expected to be the highest among member states yet again. It is easy to take such impres- sive results for granted. Since 2013 our economy has trebled in size, despite COVID-19's best efforts. To put that into perspective, previously it had taken Malta's economy over 25 years to treble in size—from 1988 to 2013. But this is pre- cisely why we cannot ignore or downplay the impeccable work done by government to support businesses and workers, nur- ture new economic niches and strengthen the country's resil- ience. Are we perfect? Certainly not, and we cannot rest on our lau- rels. We must continue to fo- cus on economic policy that raises output via productivity improvements, in tandem with the necessary investments in our physical, digital and envi- ronmental infrastructure. This must be underpinned by a mod- ern educational system that cultivates skills and talent. We must ensure that our economy not only grows but enriches the personal wellbeing of every sin- gle inhabitant. The take home message is simple: Despite global eco- nomic uncertainties and a hot- ly-contested general election, the Maltese economy is still firing on all cylinders, providing stability, prosperity and peace of mind to households and businesses in a manner that is sustainable, resilient and most importantly tangible. 10 maltatoday | SUNDAY • 24 MAY 2026 OPINION Jonathan Spiteri Economic certainty in uncertain times Economist