Provisional estimates indicate that the Gross Domestic Product (GDP) for the first quarter of 2012 amounted to €1,556.0 million, an increase of 1.0 per cent compared to the corresponding quarter last year. In real terms, GDP decreased by 1.0 per cent.

Malta has now seen two consecutive periods, the last quarter of 2011, followed by the first quarter of 2012 when it has registered a drop in growth of GDP.

A country is considered in recession when the GDP shrinks in two consecutive quarters, which has happened in Malta’s case.

During the first quarter this year, growth in gross value added was generated by the following economic activities: professional, scientific and technical activities; financial and insurance activities; public administration and defence; compulsory social security; education; human health and social work activities; arts, entertainment and recreation; repair of household goods and other services; information and communication; and real estate activities.

A drop in gross value added was registered mainly in mining and quarrying; manufacturing; electricity, gas, steam and air conditioning supply; water supply; sewerage, waste management and remediation activities. Other drops were registered in the wholesale and retail trade; repair of motor vehicles and motorcycles; transportation and storage; accommodation and food service activities; agriculture, forestry and fishing; and construction.

The Expenditure Approach

Total final consumption expenditure in nominal terms went up by 0.6 per cent and down by 0.9 per cent in real terms. Gross fixed capital formation increased by 5.5 per cent at nominal prices and by 5.1 per cent in real prices. Real exports increased and real imports declined.

The Income Approach

Compared to the corresponding quarter last year, GDP at current prices increased by €14.8 million, and is estimated to have been distributed into a €23.7 million increase in compensation of employees, a €26.5 million drop in gross operating surplus of enterprises, and a €17.7 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 first quarter this year is estimated at €1,418.0 million.

These figures are supplied by the National Statistics Office.

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