Updated | Third quarter GDP up by 5.3% over last year

Provisional estimates indicate that the Gross Domestic Product (GDP) for the third quarter amounted to €2,097.8 million, an increase of 5.3 per cent over the same quarter last year. In real terms, GDP went up by 3.8 per cent.

“Malta’s economy has continued to grow at a rate that is three times higher than the European average,” the government said in a statement. “Between July and September, Malta registered the second highest rate of economic growth amongst all the EU member states. These latest results justify a recent survey by the European Commission that shows that faith in the economy is higher in Malta than in any other EU member state.

“The rate of economic growth between July and September this year is the highest it has been since the Labour Party’s election to government in March 2013. A number of factors contributed to this economic acceleration, particularly an increase in private consumption, an increase in investment and the expansion of exports.”

During the third quarter growth in gross value added was mainly generated by public administration and defence; education; human health and social work activities; professional, scientific and technical activities; administrative and support service activities; wholesale and retail trade; repair of motor vehicles and motorcycles; transportation and storage; accommodation and food service activities. Drops were registered in manufacturing, financial and insurance activities.

“During rhese three months, workers saw their income increase by €44 million while businesses registered a profit increase of over €28 million. Almost half of this profit increase came from the wholesale and retail sectors, hotels and restautans. Strong increases also occurred in the professional service, IT, communications, arts and recreation sectors.”

Total final consumption expenditure in nominal terms increased by 3.7 per cent. In real terms, total final consumption expenditure increased by 3.8 per cent. Gross fixed capital formation increased by €12.7 million in nominal prices and by 4.6 per cent in real terms. Real exports and real imports increased.

Compared to the corresponding quarter last year, GDP at current prices went up by €106.1 million, with an increase of €43.9 million in compensation of employees, a €28.2 million increase in gross operating surplus of enterprises, and a €34.0 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 third quarter is estimated at €2,069.1 million 

“The fact that Malta is obtaining these results while the economic growth in neighbouring countries is slowing down indicates how we are enjoying the fruit of the government’s different policies,” the government said in a statement. “Rather than imposing policies of economic austerity, this administration improved investment in the country and provided stronger incentives for more people to enter the workforce.”