Malta’s GDP grows y.o.y. 7.4% in Q1

(source: Unsplash/Chris Liverani)

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Malta’s Gross Domestic Product (GDP) was up by 7.4% in the first quarter of the year, as compared to the same period a year earlier, according to the latest figures published by the National Statistics Office. In volume terms, GDP went up by 4.9%. GDP amounted to €3.092b, an increase of €213.8m compared to the base period.

Looking at the production approach Gross Value Added (GVA) — the net result of output valued at basic prices less intermediate consumption valued at purchasers’ prices — was up by year-on-year €186.7m, in the first quarter.

The increase in GVA was chiefly generated by an 11.6% (€42.9m) growth in professional, scientific and technical activities. This was followed by a 9% (€35.7m) increase in arts, entertainment and recreation, repair of household goods and other services; a 6.4% (€29.1m) increase in public administration and defence, compulsory social security, education, human health; and a 5% (€24.5m) growth in wholesale are retail trade, transportation and storage, accommodation and food services, according to figures by the NSO.

Nevertheless, the NSO reports about a drop in agriculture and fishing, from €8.564m in Q1 2018 to €8.385m Q1 2019.

Focusing on the expenditure approach — a method based on calculating GDP and is derived by adding the consumption of households, government and non-profit institutions serving households, investment and net exports — domestic demand represented the main factor related to the growth of GDP during the first quarter of 2019, the NSO says.

The total final consumption expenditure increased by 10.7% in nominal terms and 9.2% in volume terms. An increase was recorded in household expenditure — 5.1% in nominal terms and 3.9% in volume terms —, while government expenditure grew by 27.1% in nominal terms and 24.2% in volume terms. This growth was further compounded by an increase in the gross fixed capital formation of 35.1% in nominal terms and 31.8% in volume terms, as the NSO figures show.

On the one hand, exports of goods and services increased by 3.3% in nominal terms and 0.9% in volume terms. On the other hand, imports of goods and services increased by 8.4% in nominal terms and by 6.0% in volume terms.

Focusing on the income approach — a method which shows how GDP at market prices is distributed among compensation of employees, an operating surplus of enterprises and taxes on production and imports net of subsidies — GDP at current prices went up by €213.8m, and is estimated to have been distributed into a €72m increase in compensation of employees; a €125.1m increase in gross operating surplus of enterprises and a €16.7m increase in net taxation on production and imports, compared to the first quarter of 2018, according to the NSO figures.

Gross National Income (GNI) at market prices for the first quarter of 2019 is estimated at €2.802b, considering the effects of income and taxation paid and received by residents to and from the rest of the world.

The GNI differs from the GDP measure in terms of net compensation receipts, net property income receivable and net taxes — minus subsidies — receivable on production and imports from abroad.

The full report including charts and visual representation of data is available for download at the website of NSO.