Consumers' expenditure down 1.3 per cent

Malta's gross domestic product went up, in real terms, by 0.9 per cent to reach Lm363 million in the second quarter this year, the National Statistics Office said yesterday.

Taken nominally, it increased by Lm6.2 million to Lm425.3 million when compared to the same quarter last year. This was equivalent to an increase of 1.5 per cent. The gross national product (GNP), however, dropped by two per cent to Lm366.2 million. In nominal terms, it dipped by Lm8.2 million, or 1.9 per cent, to Lm425.4 million.

Net investment income from abroad was practically zero.

The Finance Minister welcomed the figures, describing them as "satisfactory" when one compared them with growth in other countries, ranging from an EU-15 average of 0.5 per cent, to 4.4 per cent in Greece and a contraction of 2.3 per cent in Portugal.

"The figures show that in spite of an unstable world economy, the Maltese economy managed to grow and generate more wealth," Minister John Dalli said.

"Workers earned more than last year and companies started to increase their investment. This is because the country regained momentum after the electorate opted for the route it wanted to pursue in its foreign policy."

The NSO reported that the manufacturing sector's contribution to the GDP decreased nominally by Lm0.8 million or one per cent to Lm80.5 million from Lm81.3 million last year. The manufacturing sector's share of the GDP declined slightly from 22.7 per cent to 22 per cent.

The government enterprises sector's value added went up by 2.6 per cent, or Lm0.6 million, to Lm23.5 million. The drop in employment income of almost Lm0.3 million was offset by an increase in profits of Lm0.9 million, to Lm12.3 million, the largest for this quarter over the past four years.

Four enterprises registered drops in their wage bill when compared to the same period last year. This was due to early retirement schemes and a reduction of employees. However, nine out of 11 enterprises reported an increase in profits or a reduction of losses. At 6.4 per cent, the sector's relative share of the GDP remained unchanged.

The contribution of the public administration sector to the GDP amounted to Lm61.4 million, an increase of Lm2.8 million, or 4.7 per cent over the June quarter of 2002.

The public administration sector's contribution to the GDP amounted to 16.8 per cent, up from 16.4 per cent last year.

Consumers' expenditure stood at Lm269.6 million during the quarter under review, a 1.3 per cent decline on the corresponding period last year. In real terms, a decrease of Lm4.5 million was registered to Lm229.8 million from Lm234.3 million.

A fall in sales of locally produced goods and services contributed towards this overall decline.

Government consumption expenditure increased from Lm87.9 million to Lm95.8 million or nine per cent over the same quarter last year. The rise in government consumption expenditure is mainly due to a number of new government entities set up this year.