Statistics confirm 'suffering' manufacturing sector - PN

Exports during the first two months of 2016 dropped by €20 million – 6% – when compared with the corresponding last year, shadow finance minister Mario de Marco has warned.

De Marco argued that the drop in exports contributed to a deterioration in the international trade balance. At the end of February this showed a deficit of €558 million compared to a deficit of €382 million in February 2015.

“Regrettably, this is yet another indication that Malta’s manufacturing sector is suffering,” de Marco said.

De Marco recalled comments made by the president of the Chamber of Commerce, Anton Borg, who pointed out that manufacturing registered a negative growth of 0.4% last year and the index for industrial production decreased by 8.1% in January 2016 when compared to the previous year.

Hundreds of jobs in the manufacturing sector are hanging in the balance, de Marco added.

De Marco went on to reiterate calls by the industry for cheaper energy bills and further reductions in the price of fuel.

“The significant drop in the price of oil, the access to cheaper energy through the interconnector and the efficiency of the BWSC plant justify further reductions in the price of energy, which reductions together with lower fuel costs will make the industry more competitive and help save jobs,” the PN deputy leader said.

“Instead of focusing on such strategies, government is focusing its energies on fire-fighting the Panama Papers scandal.”

The statistics released this week by the National Statistics Office show that the trade deficit widened by €168.9 million during the first two months when compared to the corresponding period last year.

Imports show an increase of €6.2 million, with exports decreasing by €162.7 million. Higher imports were mainly due to machinery and transport equipment, which increased by €151.8 million. This was partly outweighed by a decrease of €160.7 million in mineral fuels, lubricants and related materials. The decrease in the value of exports was triggered by lower mineral fuels, lubricants and related materials (€139.5 million).

Malta’s trade imports from the European Union reached €406.2 million, or 38.8 per cent of total imports. There was a decrease of €43.5 million in imports from euro area countries when compared to the same period last year. Main increases and decreases in imports were registered from Germany (€21.0 million) and the United States of America (€54.7 million) respectively. On the export side the main increase was directed to Italy (€12.0 million), whereas China (€17.4 million) registered the highest decrease.