Gross Domestic Product: Q3/2024
For the third quarter of 2024, the Gross Domestic Product (GDP) of the Maltese economy registered a positive year-on-year growth rate of 4.9 per cent in volume terms.
The GDP deflator went up by 2.9 per cent compared to the same quarter last year. This represents a decrease of 2.6 percentage points in comparison to the year-on-year rate recorded in the third quarter of 2023.
Table 1. Selected indicators
| Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | ||
| Gross domestic product (nominal) | € 000's | 5,440,403 | 5,329,496 | 5,271,819 | 5,670,551 | 5,875,375 |
| Gross national income (nominal) | € 000's | 4,746,058 | 4,625,913 | 4,460,687 | 4,985,699 | 5,163,470 |
| Gross domestic product (deflator) | 2020=100 | 114.2 | 114.8 | 114.9 | 117.9 | 117.6 |
| Gross domestic product per capita (nominal) | € | 9,782 | 9,489 | 9,289 | 9,951 | 10,261 |
| Gross national income per capita (nominal) | € | 8,533 | 8,237 | 7,860 | 8,749 | 9,018 |
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 third quarter of 2024, GVA rose by 5.7 per cent in volume terms, when compared to the corresponding quarter of 2023.
The contribution to the GVA growth rate in volume terms of Service activities (NACE Sections G to U), Industry (NACE Sections B to F) and Agriculture and fishing (NACE Section A) were all positive and stood at 3.4 percentage points, 1.3 percentage points and 1.0 percentage points, respectively.
The increase in Service activities was mainly driven by the growth rates recorded in the following sectors: Professional, scientific and technical activities (9.3 per cent), Accommodation and food activities (18.0 per cent) and Real estate activities (5.7 per cent).
Table 2. Production, contributions to GDP growth in volume terms
| Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | ||
| Gross value added | p.p. | 2.5 | 4.6 | 5.6 | 4.6 | 5.2 |
| Agriculture and fishing | p.p. | -2.0 | -0.4 | 0.0 | 0.2 | 0.9 |
| Industry | p.p. | 0.3 | 1.1 | 0.6 | 0.6 | 1.2 |
| Services | p.p. | 4.1 | 3.9 | 5.0 | 3.8 | 3.1 |
| Taxes less subsidies on products | p.p. | 4.9 | 1.4 | 2.5 | 3.4 | -0.2 |
Note: Contributions may not add up due to rounding.
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 4.9 percentage points to the year-on-year GDP growth rate in volume terms. External demand had a neutral contribution.
In the third quarter of 2024, Final consumption expenditure witnessed an increase of 6.3 per cent in volume terms. This was the result of an increase in the expenditure of Households and General government of 5.1 and 10.5 per cent, respectively. Conversely, Non-profit institution serving households final consumption expenditure decreased by 1.4 per cent.
Gross fixed capital formation increased by 5.3 per cent in volume terms.
Exports and imports of goods and services in volume terms rose by 3.8 and 4.4 per cent, respectively.
Table 3. Expenditure, contributions to GDP growth in volume terms
| Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | ||
| Final consumption expenditure | p.p. | 6.3 | 6.7 | 4.3 | 4.0 | 4.0 |
| Private | p.p. | 5.6 | 5.3 | 4.1 | 3.1 | 2.4 |
| Government | p.p. | 0.7 | 1.4 | 0.2 | 0.9 | 1.6 |
| Gross capital formation | p.p. | -5.0 | -6.1 | 1.1 | 0.8 | 1.0 |
| Fixed assets | p.p. | -4.9 | -6.1 | 1.1 | 0.8 | 0.9 |
| Inventories and valuables | p.p. | -0.1 | 0.0 | 0.0 | 0.0 | 0.1 |
| Exports of goods and services | p.p. | 1.8 | 5.8 | 9.4 | 6.8 | 4.7 |
| Imports of goods and services | p.p. | -4.3 | 0.4 | 6.7 | 3.5 | 4.7 |
Note: Contributions may not add up due to rounding.
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 net of subsidies.
Compared to the third quarter of 2023, the €435.0 million increase in nominal GDP was the result of a €223.6 million increase in Compensation of employees, a €211.0 million rise in Gross operating surplus and mixed income, and an increase of €0.3 million in Taxes on production and imports less subsidies.
Table 4. Income, contributions to GDP growth in nominal terms
| Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | ||
| Compensation of employees | p.p. | 3.9 | 2.6 | 4.5 | 4.0 | 4.1 |
| Agriculture and fishing | p.p. | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Industry | p.p. | 0.3 | 0.2 | 0.4 | 0.6 | 0.5 |
| Services | p.p. | 3.6 | 2.3 | 4.0 | 3.4 | 3.6 |
| Gross operating surplus and mixed income | p.p. | 6.0 | 7.9 | 6.1 | 4.2 | 3.9 |
| Taxes less subsidies on production | p.p. | 3.4 | 0.7 | 1.9 | 3.3 | 0.0 |
Note: Contributions may not add up due to rounding.
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 third quarter of 2024 was estimated at €5.2 billion.
Note: National accounts estimates in nominal terms for the reference year 2020 are still considered as provisional. Therefore, the values of all time series expressed in chain-linked volumes will be revised until the reference year is considered as final. However, this does not affect the growth rates in volume terms for closed years (2000 to 2019).
Tables
Tables
Methodological Notes
1. The chain-linked volume indices have been re-referenced to 2020=100 (Tables 6 and 8).
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.
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Gross Domestic Product: Q3/2024
- In 2024 Q3, Gross Domestic Product (GDP) rose by 4.9 per cent in volume terms.
- Final domestic demand contributed positively to GDP growth in volume terms (4.9 percentage points).
- Foreign trade had a neutral contribution to GDP growth in volume terms.
- The GDP deflator rose by 2.9 per cent when compared to 2023 Q3.
Gross Domestic Product: Q3/2024
