Malta's Gross Domestic Product (GDP) reached €3,275.1 million in the second quarter of the year, an increase of €204 million (6.6 per cent) when compared to the corresponding period in 2018.

Data published by the National Statistics Office on Friday showed that, in volume terms, GDP went up by four per cent.

The production approach

During the second quarter of 2019, Gross Value Added (GVA) increased by €191.8 million when compared to the same quarter last year, the NSO said. 

GVA is the net result of output valued at basic prices less intermediate consumption valued at purchasers’ prices.

This increase was mainly generated by arts, entertainment and recreation, repair of household goods and other services which increased by €40.1 million or 9.7 per cent, professional, scientific and technical activities, administrative and support service activities which increased by €37.4 million or 9.4 per cent, and wholesale and retail trade, transportation and storage, accommodation and food service which increased by €32.5 million or 5.4 per cent.

There was a slight drop in agriculture and fishing.

The expenditure approach

The expenditure approach is another method for calculating GDP and is derived by adding consumption of households, government and non-profit institutions serving households, investment and net exports.

During the second quarter of 2019, total final consumption expenditure increased by 6.5 per cent in nominal terms and 4.8 per cent in volume terms. This was the result of an increase in household expenditure of 5.4 per cent in nominal terms and 3.8 per cent in volume terms, and an increase in government expenditure of 9.9 per cent in nominal terms and 7.3 per cent in volume terms.

Gross fixed capital formation increased by 3.6 per cent in nominal terms and 0.8 per cent in volume terms.

Exports of goods and services increased by 2.3 per cent in nominal terms and decreased by 0.2 per cent in volume terms. Imports of goods and services increased by 0.8 per cent in nominal terms and decreased of 2.3 per cent in volume terms.

The income approach

The third approach to measure economic activity is the income approach, which shows how GDP at market prices is distributed among compensation of employees, operating surplus of enterprises and taxes on production and imports, net of subsidies.

Compared to the second quarter of 2018, the €204.0 million increase in GDP at current prices is estimated to have been distributed into a €69.5 million increase in compensation of employees, a €129.9 million increase in gross operating surplus and mixed income and a €4.6 million increase in net taxation on production and imports.

Gross National Income (GNI)

The GNI differs from the GDP measure in terms of net compensation receipts, net property income receivable and net taxes (minus subsidies) receivable on production and imports from abroad.

Considering the effects of income and taxation paid and received by residents to and from the rest of the world, GNI at market prices for the second quarter of 2019 is estimated at €3,001.9 million.

In a statement, the government welcomed the news saying its economic policies are resulting in widespread growth. As a result, the income of both the workers and businesses is increasing "substantially".

At the same time, the government went on, the growth was also resulting in an unprecedented increase in investments that improves quality of life and ensures a strong opportunity for further economic growth.    

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