GDP up 3.4 per cent

The Gross Domestic Product for the first three months of this year amounted to €1,416.9 million, up 3.4 per cent in real terms over the same period last year, the National Statistics Office said.

The NSO said that during the period under review, growth in value added was primarily generated by two sectors: financial intermediation and community, social and personal service activities.

Increases were also registered in education; health; hotels and restaurants; real estate, renting and business activities; public administration; and wholesale and retail trade. The manufacturing sector registered its highest value added in five quarters.

Declines in value added were observed in transport, storage and communication; construction; mining and quarrying; and electricity, gas and water supply.

The measurement of GDP from the expenditure approach indicated that GDP at constant prices went up by 3.4 per cent compared to the corresponding period last year.

Total final consumption expenditure in real terms decreased by 0.2 per cent. Gross fixed capital formation at constant prices declined by five per cent. Real exports and real imports experienced increases.

The change in GDP at current prices, amounting to €92.6 million, is estimated to have been distributed into a €3.5 million decline in compensation of employees, a €61.2 million rise in gross operating surplus of enterprises, and a €34.9 million increase in net taxation on production and imports.

Considering the effects of income and taxation paid and received by residents to and from the rest of the world, Gross National Income at market prices for the first quarter this year is estimated at €1,364.2 million.

Opposition spokesman Gavin Gulia said it was positive that part of the economy had started to recover after last year's lows.

However he noted that 75% of growth was the result of inventories that had accumulated in warehouses.

The main sectors which had reported gains were the banks and gaming, and there had been some improvement in tourism, although this sector had still recorded a €12m loss and a drop in jobs.

Domestic companies were still facing serious problems, mostly as a result of the high utility rates. As a result, salaries had dropped by 0.6 per cent.