Grim prospects for the New Year

53% of respondents expect themselves to be financially worse off in 2012, and slightly less than half expect the economic situation to deteriorate.

The bleak expectations contrast with the optimistic fiscal projections made in the budget presented by Tonio Fenech in November, which hinge on a projected growth rate of 2.3% over next year. 

It is only among AB and C1 - the main beneficiaries of the last budget - that a majority expect their personal financial situation to improve or remain the same. Still even among this category 37% expect to be worse off next year and 42% expect the economic situation to deteriorate.

With the exception of the middle class, among all other occupational groups an absolute majority expects to be financially worse off in 2012.

The Maltese tend to be slightly more optimistic about the economy than about their own personal prospects. 

But only 18% expect the economy to improve next year, while 20% expect the situation to remain the same as it is now.

The result comes in the wake of growing apprehension on the future of the eurozone and fears of an international recession.

The survey also shows that the self-employed are the most pessimistic on improving their personal financial fortunes over the next year. Only 15% of self employed respondents expect to be better off next year, while 69% expect to be worse off.

62% of self-employed respondents also expect the economic situation to deteriorate over the next year. The self-employed were also the second most likely category (after working class respondents) to expect the economic situation to deteriorate.

On the other hand, middle class respondents - who tend to spend most in consumption - were the most optimistic, both regarding their own personal situation as well as the economy of the country as a whole. 

Working class respondents are the least likely to expect an economic recovery during 2012. Only 6% of working class respondents expect the economic situation to improve while 64% expect it to deteriorate. Pensioners tend to be slightly more optimistic than working class respondents. But even in this category, 53% expect to be personally worse off and just under half expect the economic situation to deteriorate.

Election in 2012?

Only 24% of respondents think that a general election will be held sometime in 2012 instead of 2013, when the mandate of the present government expires. 

But in an indication of uncertainty, less than half (46%) exclude this possibility completely while 30% were undecided. This suggests that a confidence vote in the government in November has not entirely quelled speculation on an early election even if a relative majority expects the government to serve its full mandate. The survey was held before Franco Debono's latest threat to bring the government down if the Prime Minister does not honour his commitment to split the Justice and Home Affairs Ministry.

Methodology

The survey was held between Monday 12 December and Friday 16 December. A total of 503 respondents were contacted by telephone, 300 of which accepted to participate in the survey. Respondents were chosen through a systematic random sampling procedure. The results of the survey were weighed according to the age and sex ratios of the 2010 demographic review. The survey has a margin of error of /-5.7%.