The Minister for Finance notes with satisfaction the Gross Domestic Product growth figures published by NSO which show that Malta ranks among the top-performing countries in the Eurozone and the European Union on GDP growth.
Figures published by the National Statistics office on Wednesday 27th August 2014 show that in the second quarter of 2014, economic growth remained strong, increasing by 2.9 per cent when compared to the corresponding quarter of the previous year. For the first half of this year, the Maltese economy grew by 3.4 per cent.
In nominal terms GDP grew by 4.2 per cent. This nominal growth is expected to continue impacting favourably Malta’s public finances especially its debt and deficit positions.
Compared with figures published as part of Eurostat’s Flash Estimate for the second quarter of 2014 on 14th August 2014, Malta ranks as the 6th top-performing country out of the 28 European Member States, and the second top-performing country (after Latvia) out of Euro Area countries.
“This successful and encouraging rate of economic growth was the result of considerable increases in private consumption and investment,” Prof. Scicluna noted.
During the second quarter of this year, total compensation of employees increased by €52.4 million. As a result there was an annual increase in compensation per employee of 4.5 per cent. There was also a considerable increase in profits and operating surpluses of businesses of €13.3 million during the same period.
For the first half of this year, compensation of employees increased by €95.6 million with the most notable increases recorded in the construction; professional, scientific and technical activities; and wholesale and retail trade, sectors. During the same period, profits and operating surpluses of businesses increased by €33.5 million.
In the second quarter of 2014, total gross value added increased by 4.1 per cent when compared to the corresponding quarter of the previous year. The majority of industries registered increases in gross value added with the most robust increases recorded in the professional, scientific and technical activities (9.2 per cent). Other notable increases were registered in arts and entertainment and recreation (6.7 per cent); wholesale and retail trade (6.1 per cent); and information and communication (4.6 per cent).
It is to be highlighted that the turnaround in the construction sector is being sustained as evidenced by the increase in the gross value added in both the construction sector by 3.2 per cent and real estate activities by 1.6 per cent.
Finance Minister Hon. Prof. Edward Scicluna also notes with satisfaction the consistent increase, quarter after quarter, in both the gross value added and the compensation of employees in the wholesale and retail trade sector.
“The developments in the second quarter of 2014 confirm that the strong performance registered during the first months of this year is being sustained. For the economy they translate into more jobs and higher incomes,” Prof. Scicluna noted.
– Wednesday, 27th August, 2014