Malta's Gross Domestic Product (GDP) remained in negative territory in the second quarter of this year, dropping by 1.3 percent compared to the same three months of last year, accoring to NSO figures issued this morning.

In real terms, GDP contracted by 3.3 percent.

The NSO said a decline in tourist arrivals and the downturn in global demand were reflected in a decline in Malta's economic performance during the period under review.

During the period under review, drops in value added were registered in the manufacturing sector; wholesale and retail trade; hotels and restaurants; and transport, storage and communication. Growth in value added was mainly registered in electricity, gas and water supply; financial intermediation; health; public administration; other community services; education and real estate, renting and business activities.

The value added of the agriculture and construction sectors remained practically unchanged.

The measurement of GDP from the Expenditure Approach showed that GDP at constant prices declined by 3.3 per cent. Total final consumption expenditure in real terms went down by 1.0 percent.

Gross fixed capital formation at constant prices dipped by 26.2 percent. Real exports and real imports also experienced drops.

The decline in GDP at current prices, amounting to €18.2 million, was estimated to have been distributed into a €2.9 million rise in compensation of employees, a €29.7 million fall in gross operating surplus of enterprises, and a €8.6 million increase in net taxation on production and imports.