The latest published figure of 3.8% real growth by the National Statistics Office (NSO) and the Eurostat confirm, yet again, the robustness of the Maltese economy.
The figures confirm that the economy is benefitting from the various measures undertaken by the Government to create an environment which encourages effort and investment. Similar views were also expressed recently by the European Commission and several international credit agencies, which all see our economy on a strong growth trajectory.
NSO figures show that during the third quarter of 2014 real GDP continued to accelerate, increasing by 3.8% from 3.4% registered in the previous quarter, while for the first nine months of 2014 it expanded by 3.5% in real terms. This rate of economic growth remains the highest in the Euro Area.
Growth was underpinned by a strong increase in private consumption and investment, confirming the high level of confidence and optimism by consumers and investors alike. Real exports also increased, outpacing the increase in imports, thus contributing to real growth. This growth in export took place despite the difficulties faced by local firms operating in a global challenging environment.
It is also encouraging to note that growth was rather broad based, with most economic sectors registering positive growth. In particular, strong increases in value added were registered in the information and communication sector, the wholesale and retail trade sector, the real estate sector, and the professional and administrative sector.
There was also significant increases in the compensation of employees, with an increase of 5.2% registered in the third quarter. Profits also increased by 3.1% and this should encourage further investment from firms in the coming months.
Such developments further strengthen the Government projections and targets to lower the deficit to 2.1% in 2014 and 1.6% in 2015.
– Wednesday, 10th December, 2014