Annual Growth Up In June Compared To May – Will July’s Power Cuts Curb This Month’s Gains?
According to the Central Bank of Malta’s most recent economic update, “in June, annual growth in business activity edged up slightly compared to the previous month”.
This update came just one day after the PN released calculations which found that the government’s absolute failure to prepare Malta’s energy infrastructure for predictably high summer temperatures, plunging thousands into powerless darkness caused Malta’s economy to lose out on €200 million.
The CBM’s update seems to show that business activity continued to, “edge up slightly” in June – but according to confidence surveys by the European Commission, the same cannot be said for economic sentiment.
“Confidence surveys show that economic sentiment in Malta decreased in June compared to May, but remained slightly above its long-term average.”
This decline in sentiment was recorded across all sectors excluding services – and perhaps unsurprisingly, given that the industry has been inviting so much scrutiny, the strongest decline was recorded in the construction sectors.
While tumultuous political affairs, an intense record-matching heatwave, and near-nationwide power cuts have rocked the Maltese islands over recent weeks, the CBM report may be highlighting an unfortunate reality for those hoping for significant infrastructural, social, cultural, or political change.
As long as the economy remains intact, and continues to “thrive” – meaning that those who are already well-off will continue to line their pockets at the expense of everybody else – that change will not manifest without provocation.
This provocation could come from the population heeding the CBM’s last announcement, that Malta’s economic growth is set to drop significantly in 2023, to around 4%, from 2022’s rate of 7%.
Recent events have caused many to lament the state of the nation, but they have also revealed a more encouraging reality.
When a critical mass cares about and stands for a cause, authorities can be forced to listen. Whatever “democracy” really means in Malta, it isn’t quite dead yet.
The CBM’s full analysis can be accessed here.
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