Finance Minister Edward Scicluna said that Malta’s unprecedented economic growth needed to slow down in the coming years, as the country’s infrastructure was starting to buckle under pressure.
Speaking at the Labour Party's Annual General Conference, Prof. Scicluna said that while Government would be happy to retain the 6 per cent growth per year, it needed to go down to at least 5.7 per cent.
“The reason for this is that such growth puts pressure on infrastructure, which wasn’t prepared for it. Many sectors weren’t ready for the expansion and it has presented the government with new responsibilities.”
“We grew consistently from 2013 onwards and have now seen that last year ended with the third surplus in a row. By 2020, however, we hope to limit this growth and slow things down,” he said.
However, he said Malta was following a model of sustainable growth and that the economic route the government had chosen still had his full support.
The Government is currently preparing to send its financial forecast to the European Commission.
Prof. Scicluna said that the revenue generated from the Individual Investor Programme had been cut by half, so that the net growth from passport sales made up just 0.5 per cent of the surplus.
He said the general government debt as a percentage of the GDP had gone down to 46 per cent and that this was important for future generations.