GDP, GNP up slightly

The National Statistics Office reported this week that, over this year’s first quarter, both Malta’s Gross Domestic Product and Gross National Product at market prices increased nominally by respective percentages of 5.2 and 3.1.

The NSO cites increased government outlays arising mainly from the improved salaries for government employees, contributed substantially to the growth registered in nominal GDP over the quarter under review.

The NSO reports that consumer demand was somewhat more subdued than in any of the previous four quarters and accordingly resulted in a more modest rate of growth when compared to the same quarter last year. The slowdown in the growth of consumer expenditure also resulted in lower imports of consumer goods.

Meanwhile, Consumer Expenditure increased nominally by Lm5.2 million or 2.3 per cent to Lm235.9 million from Lm230.7 million a year earlier, while government consumption expenditure surged by Lm6.2 million or 8.6 per cent to Lm78.4 million from Lm72.3 million last year.

In the same vein, at Lm94.3 million, Gross Fixed Capital Formation was marginally above that recorded in the first quarter last year.

While exports of goods and services increased by Lm4.2 million or 1.2 per cent to Lm347.0 million, imports of goods and services declined by Lm3.1 million or 0.8 per cent to Lm388.3 million from Lm391.4 million a year earlier.

Despite the fact that export activity practically remained at the previous year’s level, its growth momentum was affected by the dampened market conditions for key export goods.

Likewise, the growth in Gross Fixed Capital Formation (GFCF) slowed down when compared to the high growth rate recorded a year earlier because of a drop in investment in machinery. Meanwhile, activity in the construction sector followed the trends identified in previous quarters, continued to pick up, made good the drop in investment in machinery and thereby contributed to the maintenance of the recorded outlays on GFCF a year earlier.