Malta’s gross domestic product grew by 3.9% for the second quarter of the year, amounting to €4.7 billion, according to the National Statistics Office. 

When compared to the same quarter of 2022, the figures indicate a registered increase of €416.9 million, or 9.7%. 

According to the figures, the GDP deflator went up by 5.6% when compared to the same quarter last year, representing a decrease of 0.1 percentage points when compared to the year-on-year rate recorded in the first quarter of 2022. 

During the second quarter of the year gross value added (GVA) rose by 5.2% when compared to the corresponding quarter of 2022 while the GVA contributed positively to the growth rate of both service activities and industry, which grew by 4 and 1.3 percentage points respectively. Conversely, agriculture and fishing recorded a negative contribution of 0.1 percentage points. 

The NSO said that the increase in service activities was mainly driven by growth rates recorded in administrative and support services (25.4%), financial and insurance activities (15.4%) and accommodation and food services (21.8%). 

When analysing GDP by expenditure, the data found that domestic demand had a negative contribution of 2.7 percentage points to the year-on-year GDP growth rate in terms of volume, however, external demand made a positive contribution of 6.6 percentage points. 

In the second quarter of 2023 final consumption expenditure increased by 2.9%, mainly as a result of an increase in private final consumption of 5.9 per cent. The general government final consumption decreased by 3.8% and gross fixed capital formation declined by 18.3%, which was mainly attributed to lower investment in transport equipment. The export of goods and services increased by 2.5% while the imports declined by 1.6%. 

In a statement on Monday, the Labour Party said that these results show that it is leading a government that continues to employ an economic strategy that yields results. 

Based on these results, it added, the government is now committed to continuing to implement an economic transition that emphasises quality and where the fruits of economic growth are invested in the common good.