In the first quarter of this year, economic growth in Malta continued to exceed expectations increasing by 5.2 per cent over an already high growth rate of 6.3 per cent recorded in the same quarter of last year. This comes at a time where the EU and the Euro Area are growing at 1.8 and 1.7 per cent, respectively. In nominal terms, the Maltese economy is estimated to have grown by 7.6 per cent.
PRESS RELEASE ISSUED BY THE MINISTRY FOR FINANCE
This robust economic performance reflected strong increases in both investment and private consumption. Indeed in the first quarter of 2016, investment activity recorded a significant increase of 16.2 per cent or €57.6 million despite the fact that Malta is currently at the start of the 2014-2020 EU funding program. Private consumption increased by 5.9 per cent or €58.5 million, over the previous year. Exports of goods and services also registered an increase of 0.5 per cent.
Economic growth continued to be broad-based as the majority of sectors recorded positive growth. Double digit growth rates were recorded in the in the real estate activities sector which increased by 11.9 per cent and the professional, scientific and technical activities sector increasing by 11.2 per cent. Other notable private sector increases were also recorded in the information and communication sector, in wholesale and retail trade as well as in the mining and quarrying and the agriculture and fishing sectors.
It is noteworthy that the manufacturing sector also recorded a significant increase in value added of 6.79 per cent.
Mirroring the dynamic performance in the labour market, compensation of employees increased by 5.8 per cent or €54.5 million in the first quarter of this year while, the robust economic activity boosted business profits which increased by 7.7per cent or €65.4 million.
Minister for Finance Edward Scicluna comments: “The GDP data published today show that the Government has achieved one of its main policy targets which is that of increasing Malta’s growth potential. This was the result of various supply-side policies implemented throughout these last three years including measures to increase labour force participation and measures to attract local and foreign investment by attaining economic and fiscal stability.”
Wednesday 8th June 2016