Second quarter GDP up by 2.9% over same period 2013

Provisional estimates indicate that the Gross Domestic Product (GDP) for the second quarter amounted to €1,897.8 million, an increase of 4.2 per cent over the corresponding period last year. In real terms, GDP went up by 2.9 per cent.

Finance minister Edward Scicluan said that compared with figures published as part of Eurostat’s Flash Estimate for the second quarter of 2014 on 14 August 2014, Malta ranked as the 6th top-performing country out of the 28 member states, and the second top-performing country, after Latvia, out of eurozone states.

“This successful and encouraging rate of economic growth was the result of considerable increases in private consumption and investment,” Scicluna said.

A turnaround in the construction sector was evidenced by the increase in the gross value added in both the construction sector by 3.2 per cent and real estate activities by 1.6 per cent.

Edward Scicluna said there was a consistent increase, quarter after quarter, in both the gross value added and the compensation of employees in the wholesale and retail trade sector. “The developments in the second quarter of 2014 confirm that the strong performance registered during the first months of this year is being sustained. For the economy they translate into more jobs and higher incomes," Scicluna said.

During the second quarter, growth in gross value added was mainly generated by public administration and defence; education; human health and social work activities; wholesale and retail trade; transportation and storage; accommodation and food service activities. Negative growth was registered in manufacturing, electricity and water supply.

Total final consumption expenditure in nominal terms increased by 4.8 per cent. In real terms, total final consumption expenditure went up by 3.7 per cent. Gross fixed capital formation increased by €26.3 million in nominal prices and by 14.7 per cent in real terms. Real exports increased while real imports decreased.

Compared to the corresponding quarter last year, GDP at current prices went up by €76.2 million, with an increase of €52.4 million in compensation of employees, a €13.2 million increase in gross operating surplus of enterprises, and a €10.5 million increase in net taxation on production and imports.

Considering the effects of income and taxation paid and received by residents to and from the rest of the world, Gross National Income (GNI) at market prices for the second quarter is estimated at €1,828.2 million.