Real GDP up 3%

Real GDP increased by 3% in the third quarter of 2016, down by 4.3% when compared to the 7.3% registered during the same period last year, according to statistics published by the National Statistics Office.

The fourth quarter of 2014 registered the largest growth in GDP, with a smaller growth being registered in every quarter since.

During the third quarter of 2016, Gross Value Added (GVA) increased by €100.2 million when compared to the same quarter last year. The increase in GVA – a measure of the value of goods and services produced in the country – was mainly generated by public administration and defence, education, human health and social work activities which increased by €24.5m. Arts, entertainment and recreation, repair of household goods and other services increased by €21.5m while drops were registered I construction, agriculture and fisheries.

In real terms, household final consumption expenditure increased by 3.1% while government consumption expenditure of 7.3%. Gross fixed capital formation, which measures investment decreased by 22.3% in real terms.

When compared to the same quarter last year, the increase in GDP at current prices of €113.0m is estimated to have been distributed into a €52.7m increase in compensation of employees, a €57.6m increase in gross operating surplus of enterprises, and a €2.8m increase in next taxation on production and imports.

In a statement, the government said that the numbers confirm estimates made in the last budget. Moreover, the government said that the economic growth is down to increased private consumption, driven by an increase in wages.

“Wages went up by €177m, or 6%, during the third quarter of this year while in the same period in the last year of the previous administration, the increase was of €121m,” the statement read.

Another factor behind he economic growth, it said, is that during the first nine months of 2016, retail outlets performed well.

“Official numbers show that the profits registered by businesses increased by €183m in the first nine months of 2016, up by 5.7% over 2015.”

The government said that over the coming months, through measures announced in the Budget, it will continue working to ensure that the registered growth reaches everyone in society.