Gross Domestic Product: Q2/2024
Errata Corrige: 26 August 18:45hrs
The National Statistics Office carried out a benchmark revision of National Accounts, outcomes of which are being published in this news release. The main improvements include the integration of Supply and Use Tables 2019 and selected data from the Census of Population and Housing 2021, among others.
Errata Corrige: Table 8 has been uploaded again following an update carried out after the publication of the release. Furthermore, the sixth row in Table 1 showing the GDP deflator has been revised. No changes to the commentary were necessary. Online documents were amended on 28 August 2024 at 18:45hrs.
Errata Corrige: Table 8 has been uploaded again following an update carried out after the publication of the release. Furthermore, the sixth row in Table 1 showing the GDP deflator has been revised. No changes to the commentary were necessary. Online documents were amended on 28 August 2024 at 18:45hrs.
For the second quarter of 2024, the Gross Domestic Product (GDP) of the Maltese economy registered a positive year-on-year growth rate of 4.4 per cent in volume terms.
The GDP deflator went up by 3.1 per cent compared to the same quarter last year. This represents a decrease of 0.8 percentage points in comparison to the year-on-year rate recorded in the first quarter of 2024.
Chart 1. Gross Domestic Product
growth rates, year-on-year
No Data Found
The production approach
The production approach, also called the output approach, measures GDP as the sum of the Gross Value Added (GVA), which is the difference between value of Output and the value of Intermediate consumption and Taxes less subsidies on products.
During the second quarter of 2024, GVA rose by 5.2 per cent in nominal terms, when compared to the corresponding quarter of 2023.
The contribution to the GVA growth rate in nominal terms of Service activities (NACE Sections G to U) and Industry (NACE Sections B to F) were both positive and stood at 5.0 and 0.5 percentage points, respectively. Agriculture and fishing (NACE Section A) had a negative impact on GVA growth of 0.3 percentage points.
The increase in Service activities was mainly driven by the growth rates recorded in the following sectors: Professional, scientific and technical activities (11.4 per cent), Real estate activities (13.1 per cent), and Financial and insurance activities (8.6 per cent)1 (Table 5).
The expenditure approach
The expenditure approach is another method used to calculate GDP and is derived by adding Final consumption expenditure, Gross capital formation and Exports less Imports.
Domestic demand had a positive contribution of 2.1 percentage points to the year-on-year GDP growth rate in volume terms. External demand also registered a positive contribution of 2.3 percentage points.
In the second quarter of 2024, Final consumption expenditure witnessed an increase of 2.5 per cent in volume terms. This was the result of an increase in the expenditure of Households and NPISHs2 of 4.1 and 1.5 per cent, respectively. Conversely, General government final consumption expenditure decreased by 1.6 per cent.
Gross fixed capital formation increased by 2.1 per cent in volume terms.
Exports and imports of goods and services in volume terms rose by 5.2 and 3.9 per cent, respectively (Table 8).
The income approach
The third approach to measure economic activity is the income approach, which shows how GDP is distributed among Compensation of employees, Operating surplus of enterprises and Taxes on production and imports less subsidies.
Compared to the second quarter of 2023, the €389.8 million increase in nominal GDP was the result of a €173.7 million increase in Compensation of employees, a €89.3 million rise in Gross operating surplus and mixed income, and an increase of €126.8 million in Taxes on production and imports less subsidies (Table 9).
Gross National Income (GNI)
GNI differs from the GDP measure in terms of net compensation receipts, net property income receivable and net taxes 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 2024 was estimated at €4.8 billion (Table 1).
Benchmark revision in National Accounts data for reference years 1995 to 2024Q2
The National Statistics Office is implementing a benchmark revision in the National Accounts. The revision will take place in the third quarter of 2024. Benchmark revisions aim to reflect improved methodologies caused by changes in statistical methods, concepts, sources of data, definitions and classifications and affect the entire time series.
Below are the main enhancements that this benchmark revision has brought about:
- The integration of the Supply and Use Tables (SUT) 2019. SUT is an integrated framework which provides valuable information for checking consistency and completeness of national accounts data. SUT are matrices by product and industry which show how the supply of goods and services through domestic production and imports are used by for intermediate consumption and final uses (final consumption expenditure, gross capital formation and exports);
- The integration of the Census of Population and Housing (CPH) of 2021, which provides detailed statistics on demography and dwellings;
- The integration of the Structural Business Statistics (SBS) survey results for 2020 and 2021. The results of SBS 2022 have been partially integrated as well. SBS are presented according to the NACE activity classification and cover industry, construction and most of the services. SBS include a comprehensive set of variables describing business demography and employment characteristics, as well as monetary variables (for example, income or expenditure related indicators such as value added or investment). As from 2020, 9 additional NACE3 related to personal services are covered by SBS;
- The integration of action points and reservations from the Gross National Income (GNI) Own-Resources (OR) and Excessive Deficit Procedure (EDP) verifications;
- The introduction of Household final consumption expenditure based on the new COICOP4 2018 classification;
- The implementation of the task force recommendations on fixed assets and estimation of consumption of fixed capital;
- New information on the Gaming sector from updated administrative data sources for the years 2016 to 2018;
- The integration of pension funds from 2012 onwards;
- The integration of new estimates for exhaustiveness from whole time series;
- Refinements in estimating primary income receivable/payable from/to the rest of the world, thus resulting in refinements to the GDP to GNI transition;
- For the first time NSO will publish quarterly national accounts main aggregates in nominal terms for the period 1995 to 19995 as well as the annual non-financial accounts by institutional sectors for the period 1995 to 2023.
Detailed methodological information on the different enhancements incorporated in this benchmark revision can be accessed here.
Notes:
1 Table 6 showing the GDP identity from the production (output) side in chain-linked volumes will not be published in this release. This information will be published by the first half of 2025.
2 Non-profit institutions serving households.
3 NACE 85, 86, 87, 88, 90, 91, 92, 93 and 96.
4 Classification of individual consumption by purpose.
5 Quarterly data covering 1995 to 1999 in nominal terms will be submitted to Eurostat following the publication of this release.
Additional Tables and Charts
Tables
The National Statistics Office carried out a benchmark revision of National Accounts, outcomes of which are being published in this news release. The main improvements include the integration of Supply and Use Tables 2019 and selected data from the Census of Population and Housing 2021, among others.
Errata Corrige: Table 8 has been uploaded again following an update carried out after the publication of the release. Furthermore, the sixth row in Table 1 showing the GDP deflator has been revised. No changes to the commentary were necessary. Online documents were amended on 28 August 2024 at 18:45hrs.
Errata Corrige: Table 8 has been uploaded again following an update carried out after the publication of the release. Furthermore, the sixth row in Table 1 showing the GDP deflator has been revised. No changes to the commentary were necessary. Online documents were amended on 28 August 2024 at 18:45hrs.
Table 6. GDP identity from the production (output) side in chain-linked volumes by period (reference year 2020)
This information will be published by the first half of 2025.
Methodological Notes
1. The chain-linked volume indices have been re-referenced to 2020=100 (Table 8).
8. Quarterly data for the reference period 1995 to 1999 will be disseminated through the Eurostat website.
9. More information relating to this news release may be accessed at:
10. The data contained in this release is subject to revision. For an updated time-series which includes past data, please refer to the Statistical Indicators for this domain.
11. A detailed news release calendar is available online.
12. References to this news release are to be cited appropriately. For guidance on access and re-use of data please visit our dedicated webpage.
13. For further assistance send your request through our online request form.
Gross Domestic Product: Q2/2024
Errata Corrige: 26 August 18:45hrs
The National Statistics Office carried out a benchmark revision of National Accounts, outcomes of which are being published in this news release. The main improvements include the integration of Supply and Use Tables 2019 and selected data from the Census of Population and Housing 2021, among others.
Errata Corrige: Table 8 has been uploaded again following an update carried out after the publication of the release. Furthermore, the sixth row in Table 1 showing the GDP deflator has been revised. No changes to the commentary were necessary. Online documents were amended on 28 August 2024 at 18:45hrs.
Errata Corrige: Table 8 has been uploaded again following an update carried out after the publication of the release. Furthermore, the sixth row in Table 1 showing the GDP deflator has been revised. No changes to the commentary were necessary. Online documents were amended on 28 August 2024 at 18:45hrs.
- In Q2/2024, Gross Domestic Product (GDP) rose by 4.4 per cent in volume terms.
- Final domestic demand contributed positively to GDP growth (1.1 percentage points).
- Foreign trade also contributed positively to GDP growth (3.5 percentage points).
Gross Domestic Product: Q2/2024
