Provisional estimates indicate that the Gross Domestic Product (GDP) for the first quarter of 2009 amounted to €1,315.2 million, a decline of 1.0 per cent compared to the corresponding period last year. In real terms, GDP contracted by 3.3 per cent.

Lower tourist arrivals along with a downturn in global demand due to the international financial crisis were the cause of decline in Malta’s economic activity during the period under review.

The Production Approach

Drops in value added were registered in electricity, gas and water supply; hotels and restaurants; fishing and the overall manufacturing sector. Drops were also registered in wholesale and retail trade; financial intermediation; transport, storage and communication; construction; and public administration.

Growth in value added was registered in the following industries: remote gaming activities; health; education; agriculture; real estate, renting and business activities.

The Expenditure Approach

This measurement of GDP indicates that at constant prices GDP declined by 3.3 per cent, as shown in Table 10. Total final consumption expenditure in real terms declined by 0.8 per cent. Gross fixed capital formation at constant prices declined. Real exports and real imports also experienced drops.

The Income Approach

The decline in GDP at current prices, amounting to €13.7 million, is estimated to have been caused by a €25.8 million rise in compensation of employees, a €45.3 million fall in gross operating surplus of enterprises, and a €5.7 million rise 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 of the year is estimated at €1,170.7 million .

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