"PN Concerned About Population Growth," Says Alex Borg

Alex Borg, leader of the Nationalist Party, referred to the strong warning given to the Maltese Government by the International Monetary Fund (IMF) in its most recent report.

The Opposition leader said that this report confirms PN’s concerns regarding population growth, specifically the fact that Malta has a population density more than 15 times the European average.

He continued by stating that a Labour Market Study is needed sooner rather than later, so that an economic model can be designed suited to the country’s needs.

Borg promised that once the Nationalist Party is in government it will launch this study on the labour market within its first 100 days, because this is the only ay to plan the country’s future.

On Sunday, Prime Minister Robert Abela said that IMF has decided that it will no longer carry out its reporting on Malta every year, but every two years instead, due to Malta’s strong economic performance.

The Prime Minister stated that IMF’s recent report confirms the strength of the country, and also noted that the wealth generated per person in Malta has doubled.

He explained that this economic success is allowing the Government, among other things, to implement the largest tax cut in history, citing several measures that came into effect in this year’s budget, including tax reductions for parents.

He stated how this Government ensured that taxes were reduced for all families, including those with one child, in contrast to the Opposition’s proposal, which left out around 30,000 families.

The International Monetary Fund said Malta’s economy continues to perform strongly despite global uncertainty, with growth still exceeding the EU average, inflation close to the European Central Bank’s target, and public debt remaining sustainable.

However, growth is expected to ease toward about 4 percent as the current labour-driven model slows and key sectors such as tourism and gaming mature.

The IMF noted that policy priorities should focus on strengthening fiscal buffers while allowing more investment in infrastructure, skills, and innovation, adding that long-term growth will depend on reforms that raise productivity and address structural challenges.

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