Economic growth in the second quarter of this year slowed to half of what it was last year but, at three per cent, it was still considerably faster than in most member states of the European Union. 

The NSO said this morning that the Gross Domestic Product (GDP) for the second quarter of 2016 amounted to €2,277.6 million, an increase of €102.7 million or 4.7 per cent when compared to the corresponding period last year. In real terms, GDP went up by three per cent.

Gross Value Added (GVA) increased by €86.4 million when compared to the same quarter last year.

This was mainly generated by professional, scientific and technical activities; administrative and support service activities which increased by €19.5 million or 8.5 per cent; public administration and defence; education; human health and social work activities which increased by €19.5 million or 5.3 per cent; information and communication which increased by €11.2 million or 10.1 per cent . A slight drop was registered in construction.

The expenditure approach

Total final consumption expenditure in nominal terms increased by 3.5 per cent and by 2.4 per cent in real terms. Gross fixed capital formation increased by 1.2 per cent in nominal prices and decreased by 2.1 per cent in real terms. Real exports increased by 0.2 per cent and real imports decreased by 0.03 per cent.

The income approach

Compared to the corresponding quarter last year, the increase in GDP at current prices of €102.7 million is estimated to have been distributed into a €57 million increase in compensation of employees, a €39.7 million increase in gross operating surplus of enterprises, and a €6 million increase in net taxation on production and imports.

Gross National Income

Considering the effects of income and taxation paid and received by residents to and from the rest of the world, Gross National Income (GNI) at market prices for the second quarter of 2016 is estimated at €2,225.3 million, the NSO said.