Updated:GDP back in positive territory - PM welcomes results

Updated: Adds PL reaction

GDP was positive in the fourth quarter of last year after contracting in the previous three quarters, the NSO said today.

The results were welcomed by the Prime Minister, who said Malta had emerged from the recession (see video).

The NSO said that provisional estimates showed that GDP for 2009 amounted to €5.7 billion, an increase of 0.3 per cent over 2008.

In real terms, however, GDP contracted by 1.9 per cent.

Quarterly GDP growth rates at market prices during 2009 ranged from -2.0 per cent in Q2 to 2.4 per cent in Q4, when compared to the corresponding periods in 2008. In real terms, GDP contracted for first three consecutive quarters and was positive in Q4.

Growth in value added was generated in financial intermediation; real estate, renting and business activities; other community services; public administration; education; health; agriculture; fishing; and electricity, gas and water supply.

Drops were registered in the manufacturing sector; hotels and restaurants; transport, storage and communication; wholesale and retail trade; and construction.

GDP at constant prices declined by 1.9 per cent. Total final consumption expenditure in real terms increased by 0.4 per cent.

Gross fixed capital formation at constant prices declined by 19.3 per cent. Real exports and real imports also experienced declines.

The NSO said the annual change in GDP at current prices, amounting to €14.8 million, was estimated to have been distributed into a €6.3 million rise in compensation to employees, a €24.8 million decline in gross operating surplus of enterprises, and a €33.3 million rise in net taxation on production and imports.

See full NSO statement in PDF below.

PL REACTION

The Labour Party in a reaction to Dr Gonzi's remarks, said that if he believed himself, he should withdraw the utility bills.

"Some sectors of the Maltese might be statistically out of recession, even though GDP in real terms is still in negative territory, but hardworking families are still in the middle of a human recession.

"Lawrence Gonzi's propaganda exercise on this issue confirm that the Prime Minister is out of touch from the everyday life of families and businesses," the PL said.

It said that the figures showed that prices increased much more than wages.

"If Lawrence Gonzi is so convinced that he did the trick and has solved all problems, he might as well want to withdraw the sky-high water and electricity bill increases he voted for last week," the party said.