Euro area, EU25 GDP up by 0.9 per cent

The Maltese economy is beginning to perform much better. Although there still remains a lot to be done the figures so far are encouraging. If reforms continue to be faced strongly and with the proverbial timely stitch in time, then one can look forward to higher rates of economic growth - all other things remaining unchanged. This augurs well for the introduction of the euro.

But what about the EU economy? How is it performing? Figures just published by the EU show that the Gross Domestic Product (GDP) of the euro area (the countries which have introduced the euro) grew by 3.3% and that of the 25 EU member states by 3.5% respectively compared to the fourth quarter of 2005.

When compared to the previous quarter of 2006, revised figures published by the Commission show that both the economy of the euro area countries and that of the EU-25 increased by 0.9 per cent. By the way for revising the figures in the light of additional information, no one was roasted.

In the fourth quarter of 2006 and among the member states for which seasonally adjusted GDP data are available, Latvia (+2.5%) recorded the highest growth rate, followed by Slovakia (+2.2%), Malta (+2.1%) and Estonia (+2.0%).

Meanwhile growth in investment and exports accelerated. In the fourth quarter of 2006, household final consumption expenditure grew by 0.4% in the euro area and by 0.6% in the EU25. Investment grew by 1.5% in the euro area and by 1.8% in the EU25. Exports rose by 3.6% in the euro area and by 3.0% in the EU25. Imports increased by 1.7% in the euro area and by 1.6% in the EU25.

Among the member states for which seasonally adjusted expenditure data are available, growth rates of household final consumption ranged from -0.4% in Hungary to +4.1% in Latvia. Growth of gross fixed capital formation varied between -1.4% in Portugal and +7.1% in Luxembourg. Exports grew most strongly in Malta (+7.1%) while Latvia (-6.7%) recorded the strongest decrease. Imports rose the most in Latvia (+21.9%) while they fell the most in Malta (-3.6%).

In the same period, and over the whole year 2006, GDP grew by 3.3% in the US (+3.2% in 2005) and by 2.2% in Japan (+1.9% in 2005).