Gross Domestic Product: Q4/2023
For the fourth quarter of 2023, the Gross Domestic Product (GDP) of the Maltese economy registered a positive year-on-year growth rate of 4.3 per cent in volume terms.
The GDP deflator went up by 4.8 per cent compared to the same quarter last year. This represents a decrease of 0.6 percentage points in comparison to the year-on-year rate recorded in the third quarter of 2023.
Table 1. Selected indicators
| Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | ||
| Gross domestic product (nominal) | € 000's | 4,517,521 | 4,493,840 | 4,787,035 | 5,164,832 | 4,936,165 |
| Gross national income (nominal) | € 000's | 4,045,033 | 4,145,362 | 4,309,921 | 4,734,582 | 4,463,845 |
| Gross domestic product (deflator) | 2015=100 | 120.3 | 121.1 | 124.7 | 126.4 | 126.0 |
| Gross domestic product per capita (nominal) | € | 8,362 | 8,238 | 8,753 | 9,408 | 8,936 |
| Gross national income per capita (nominal) | € | 7,487 | 7,599 | 7,881 | 8,624 | 8,081 |
Chart 1. Gross Domestic Product
growth rates, volume terms, 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 the value of output and the value of intermediate consumption, and taxes less subsidies on products.
During the fourth quarter of 2023, GVA rose by 5.1 per cent in volume terms, when compared to the corresponding quarter of 2022.
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 4.3 percentage points, 0.7 percentage points and 0.1 percentage points, respectively.
The increase in Service activities was mainly driven by the growth rates recorded in the following sectors: Administrative and support services activities (22.9 per cent), Accommodation and food service activities (15.3 per cent) and Financial and insurance activities (6.7 per cent).
Chart 2. Gross value added
growth rates, volume terms, year-on-year
No Data Found
Table 2. Production, contributions to GDP growth in volume terms
| Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | ||
| Gross value added | p.p. | 8.2 | 6.3 | 6.0 | 4.2 | 4.7 |
| Agriculture & fishing | p.p. | 0.0 | 0.0 | -0.1 | -0.2 | 0.1 |
| Industry | p.p. | 0.9 | 0.3 | 0.7 | -0.1 | 0.7 |
| Services | p.p. | 7.3 | 6.0 | 5.3 | 4.5 | 3.9 |
| Taxes less subsidies on products | p.p. | -1.2 | 0.0 | -1.2 | 2.8 | -0.4 |
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 Net exports.
Domestic demand had a negative contribution of 4.0 percentage points to the year-on-year GDP growth rate in volume terms. Conversely, the external demand registered a positive contribution of 8.3 percentage points.
In the fourth quarter of 2023, Final consumption expenditure increased by 7.2 per cent in volume terms. This was the result of increases in Private final consumption and General government final consumption of 7.3 per cent and 7.1 per cent, respectively.
Gross fixed capital formation declined by 30.4 per cent in volume terms. This decrease was mainly attributable to lower investment in Transport equipment compared to 2022.
Exports and imports of goods and services in volume terms rose by 7.4 per cent and 2.4 per cent, respectively.
Chart 3. Expenditure, main components
growth rates, volume terms, year-on-year
No Data Found
Table 3. Expenditure, contributions to GDP growth in volume terms
| Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | ||
| Final consumption expenditure | p.p. | 2.7 | 3.7 | 2.9 | 4.4 | 4.4 |
| Private | p.p. | 2.9 | 3.5 | 3.0 | 3.4 | 3.1 |
| Government | p.p. | -0.2 | 0.1 | -0.1 | 1.0 | 1.3 |
| Gross capital formation | p.p. | 9.1 | -3.0 | -4.1 | -6.4 | -8.4 |
| Fixed assets | p.p. | 9.1 | -3.1 | -4.2 | -6.3 | -8.4 |
| Inventories and valuables | p.p. | 0.0 | 0.1 | 0.1 | -0.1 | 0.0 |
| Exports of goods and services | p.p. | 12.2 | 16.7 | 18.8 | 10.4 | 12.0 |
| Imports of goods and services | p.p. | 17.0 | 11.0 | 12.8 | 1.4 | 3.7 |
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 fourth quarter of 2022, the €418.6 million increase in nominal GDP was the result of a €138.0 million increase in Compensation of employees, a €266.3 million rise in Gross operating surplus and mixed income, and an increase of €14.3 million in Net taxation on production and imports.
Chart 4. Compensation of employees
growth rates, nominal terms, year-on-year
No Data Found
Table 4. Income, contributions to GDP growth in nominal terms
| Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | ||
| Compensation of employees | p.p. | 5.4 | 4.6 | 3.5 | 3.9 | 3.1 |
| Agriculture & fishing | p.p. | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Industry | p.p. | 0.4 | 0.6 | 0.5 | 0.4 | 0.4 |
| Services | p.p. | 5.0 | 4.1 | 3.1 | 3.4 | 2.7 |
| Gross operating surplus and mixed income | p.p. | 8.9 | 6.0 | 7.3 | 5.5 | 5.9 |
| Taxes less subsidies on production | p.p. | -0.8 | 1.5 | -0.2 | 3.4 | 0.3 |
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 fourth quarter of 2023 was estimated at €4.5 billion.
Tables
Tables
Methodological Notes
1. Under normal circumstances, GDP estimates are based on established sources and estimation techniques, which have been tested and evaluated carefully, as well as documented. GDP is estimated independently from the output approach and expenditure approach, complemented by estimates of income-related data. These estimates are based on a multitude of sources such as tourism statistics, short-term statistics, trade and balance of payments statistics, as well as administrative data.
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.
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Gross Domestic Product: Q4/2023
- In 2023 Q4, Gross Domestic Product (GDP) rose by 4.3 per cent in volume terms.
- Final domestic demand contributed negatively to GDP growth (4.0 percentage points) due to negative growth in Gross fixed capital formation.
- Conversely, foreign trade contributed positively to GDP growth (8.3 percentage points).
Gross Domestic Product: Q4/2023
