GDP up by 4.1% in third quarter

Malta's real Gross Domestic Product rose by 4.1 per cent in the third quarter this year over the same quarter last year, the third consecutive rise this year.

The GDP had increased by 1.4 per cent in the first quarter and 2.2 per cent in the second.

The National Statistics Office said yesterday that when compared to the same quarter last year, the GDP increased nominally by Lm21 million to reach Lm440.1 million. This is equivalent to a nominal growth of five per cent.

In real terms the GDP increased by 4.1 per cent or Lm14.8 million to Lm377.8 million.

The Gross National Product (GNP) went up by 8.2 per cent to Lm454.6 million. In real terms GNP increased by 7.9 per cent to Lm393.3 million.

Much of the increase is accounted for by the recovery of the electronics sub-sector, which was reflected in a Lm8.7 million, or 11.6 per cent increase in the manufacturing sector's contribution to the GDP, which rose to Lm83.4 million when compared to the same quarter last year.

Reported profits shot up by 22.6 per cent. This increase was triggered to a lesser extent by all other sub-sectors, which registered an increase of 20.9 per cent.

Although there was a slight fall in employment in manufacturing of 0.4 per cent, employment income increased by 3.8 per cent when compared to the same quarter last year. The sector's relative contribution to the GDP rose from 20.9 per cent to 22.2 per cent.

As would be expected from the increase in activity in this sector, exports of goods and services increased by Lm18.2 million or 4.9 per cent to Lm391 million, thus recovering from the downturn experienced last year.

In real terms exports went up by Lm15.8 million or 4.9 per cent to Lm338.6 million.

The same applies for imports of goods and services, which increased by Lm21.0 million or 5.8 per cent to Lm382.1 million. In real terms imports stood at Lm319.1 million, an increase of 3.3 per cent over the same quarter last year.

Due to a reduction in the number of days stayed by tourists in Malta, there was a slight decrease in the overall wages and profits of the hotel industry. However, the decline in the hotels industry was compensated by an increase in the value added of the other smaller components in the private services sector. This sector's relative contribution to the GDP remained practically unchanged at 11.7 per cent.

Income from property increased by the Lm0.8 million or two per cent, from Lm37.7 million to Lm38.5 million this year. Expenditure on gross fixed capital formation increased nominally by Lm3.7 million or 4 per cent, to Lm95.4 million.

Government expenditure on goods and services increased from Lm81.4 million to Lm83 million or two per cent.

Expenditure by government departments increased by 1.1 per cent, while expenditure by government entities went up by 5.7 per cent.

In real terms, government consumption expenditure increased by Lm0.4 million, or 0.6 per cent, from Lm64.7 million to Lm65.1 million over the same quarter last year.