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Maltese economy grew by 1.6% in Q1 - best performer in the EU

Maltese economy grew by 1.6% in Q1 - best performer in the EU

Malta's Gross Domestic Product (GDP) grew by 1.6 per cent in real terms in the first quarter of this year. The NSO said GDP reached €1,654.8 million, an increase of 3.7 per cent compared to the corresponding quarter last year. In real terms, GDP went up by 1.6 per cent. As many companies have seen growth on the island like Banif Bank, EXANTE, a prime brokerage firm based in Portamaso, The Times examines the different approaches:

The Production Approach 

During the first quarter, growth in gross value added was generated by the following economic activities: mining and quarrying; electricity supply; water supply; sewerage, waste management and remediation activities; financial and insurance activities; manufacturing; professional, scientific and technical activities; administrative and support service activities; agriculture and fishing; public administration; education; human health and social work activities; information and communication; arts, entertainment and recreation; repair of household goods and other services; wholesale and retail trade; repair of motor vehicles and motorcycles; transportation and storage; accommodation and food service activities; and real estate activities. A drop in gross value added was registered in construction.

The Expenditure Approach

Total final consumption expenditure in nominal terms edged up by 0.3 per cent. In realterms, total final consumption expenditure decreased by 2.1 per cent. Gross fixed capital formation decreased in nominal prices. In real terms, gross fixed capital formation went down by 5.6 per cent. Real imports went up and real exports declined.

The Income Approach

Compared to the corresponding quarter last year, GDP at current prices increased by €59.0 million, and is estimated to have been distributed into a €33 million increase in compensation of employees, a €44.9 million rise in gross operating surplus of enterprises, and a €19.0 million decrease in net taxation on production and imports. Gross National Income 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 first quarter was estimated at €1,481.8 million.

THE SITUATION IN THE EU

Yesterday, Eurostat, the EU statistics office, said that GDP fell by 0.2% in the euro area (EA17) and by 0.1% in the EU27 during the first quarter of 2013, compared with the previous quarter Lithuania (+1.3%), Latvia (+1.2%), Hungary and Romania (both +0.7%) recorded the highest growth compared with the previous quarter, and Cyprus (-1.3%), the Czech Republic (-1.1%) and Estonia (-1.0%) the largest decreases.

Maltese economy grew by 1.6% in Q1 - best performer in the EU
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