Provisional estimates indicate that the Gross Domestic Product (GDP), for the second quarter this year, amounted to €1,413.7 million, a decline of 1.3 per cent compared to the corresponding period last year. In real terms, GDP contracted by 3.3 per cent.

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.

The Production Approach

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 the following industries: 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 Expenditure Approach

The measurement of GDP from the Expenditure Approach indicates that GDP at constant prices declined by 3.3 per cent. Total final consumption expenditure in real terms went down by 1.0 per cent. Gross fixed capital formation at constant prices dipped by 26.2 per cent. Real exports and real imports also experienced drops. Details on developments in the Expenditure Approach components of GDP.

The Income Approach

The decline in GDP at current prices, amounting to €18.2 million, is 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.

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 is estimated at €1,390.5 million, up by €64.1 million, or 4.8 per cent.

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