The Gross Domestic Product for the second quarter of 2023 has been subject to an ad-hoc revision in national accounts data. Ad hoc revisions result mostly from the incorporation of new data sources to replace past estimates with more robust figures, and methodological improvements, which may cause more significant changes than those carried out in routine revisions. The results of 2018 are now considered definitive until the next benchmark revision.
Due to these modifications, it is not possible to compare the data in this news release with figures previously published.
For the second quarter of 2023, the Gross Domestic Product (GDP) of the Maltese economy registered a positive year-on-year growth rate of 3.9 per cent in volume terms.
The GDP deflator went up by 5.6 per cent compared to the same quarter last year. This represents a decrease of 0.1 percentage points in comparison to the year-on-year rate recorded in the first quarter of 2023.
Table 1. Selected indicators
| 2022Q2 | 2022Q3 | 2022Q4 | 2023Q1 | 2023Q2 | ||
| Gross domestic product (nominal) | € 000's | 4,293,967 | 4,499,250 | 4,435,704 | 4,422,667 | 4,710,870 |
| Gross national income (nominal) | € 000's | 3,880,546 | 4,072,913 | 3,963,217 | 4,097,927 | 4,278,619 |
| Gross domestic product (deflator) | 2015=100 | 118.1 | 120.1 | 120.3 | 121.4 | 124.8 |
| Gross domestic product per capita (nominal) | € | 8,137 | 8,449 | 8,244 | 8,152 | 8,662 |
| Gross national income per capita (nominal) | € | 7,354 | 7,648 | 7,366 | 7,554 | 7,867 |
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 value of output less the value of intermediate consumption, and Taxes less subsidies on products.
During the second quarter of 2023, GVA rose by 5.2 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) and Industry (NACE Sections B to F) were both positive and stood at 4.0 percentage points and 1.3 percentage points, respectively. Conversely, Agriculture and fishing (NACE Section A) recorded a negative contribution of 0.1 percentage points.
The increase in Service activities was mainly driven by the growth rates recorded in the following sectors: Administrative and support services activities (25.4 per cent), Financial and insurance activities (15.4 per cent) and Accommodation and food service activities (21.8 per cent).
Chart 2. Gross value added
growth rates, volume terms, year-on-year
No Data Found
Table 2. Production, contributions to GDP growth
Note: Contributions may not add up due to rounding.
| 2022Q2 | 2022Q3 | 2022Q4 | 2023Q1 | 2023Q2 | ||
| Gross value added | p.p. | 10.1 | 6 .8 | 6.4 | 5.1 | 4.8 |
| Agriculture & fishing | p.p. | 0.3 | -0.2 | 0.0 | -0.1 | -0.1 |
| Industry | p.p. | -0.1 | 0.6 | 1.1 | 0.5 | 1.2 |
| Services | p.p. | 9.9 | 6.4 | 5.3 | 4.7 | 3.7 |
| Taxes less subsidies on products | p.p. | -0.2 | -2.1 | -1.1 | -0.2 | -1.0 |
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 2.7 percentage points to the year-on-year GDP growth rate in volume terms. Conversely, the external demand registered a positive contribution of 6.6 percentage points.
In the second quarter of 2023, Final consumption expenditure increased by 2.9 per cent in volume terms. This was mainly the result of an increase in Private final consumption of 5.9 per cent. General government final consumption decreased by 3.8 per cent.
Gross fixed capital formation declined by 18.3 per cent in volume terms. This decrease was mainly attributable to lower investment in Transport equipment.
Exports of goods and services in volume terms increased by 2.5 per cent and Imports of goods and services declined by 1.6 per cent.
Chart 3. Expenditure, main components
growth rates, volume terms, year-on-year
No Data Found
Table 3. Expenditure, contributions to GDP growth
| 2022Q2 | 2022Q3 | 2022Q4 | 2023Q1 | 2023Q2 | ||
| Final consumption expenditure | p.p. | 7.5 | 3.4 | 2.6 | 3.7 | 1.8 |
| Private | p.p. | 5.4 | 3.1 | 3.0 | 3.3 | 2.5 |
| Government | p.p. | 2.1 | 0.2 | -0.4 | 0.4 | -0.7 |
| Gross capital formation | p.p. | 4.6 | 6.8 | 8.7 | -3.8 | -4.5 |
| Fixed assets | p.p. | 4.6 | 6.7 | 8.7 | -3.9 | -4.5 |
| Inventories and valuables | p.p. | 0.0 | 0.1 | 0.1 | 0.1 | 0.1 |
| Exports of goods and services | p.p. | 12.0 | 15.5 | 1.6 | -2.6 | 4.2 |
| Imports of goods and services | p.p. | 14.2 | 20.9 | 7.7 | -7.8 | -2.3 |
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 second quarter of 2022, the increase of €416.9 million in nominal GDP was mainly the result of increases in Compensation of employees and Gross operating surplus and mixed income of €135.4 million and €285.3 million, respectively. These increases were partly offset by a decrease of €3.8 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
| 2022Q2 | 2022Q3 | 2022Q4 | 2023Q1 | 2023Q2 | ||
| Compensation of employees | p.p. | 4.4 | 3.8 | 5.5 | 4.7 | 3.2 |
| Agriculture & fishing | p.p. | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Industry | p.p. | 0.4 | 0.4 | 0.4 | 0.5 | 0.4 |
| Services | p.p. | 4.0 | 3.3 | 5.1 | 4.1 | 2.7 |
| Gross operating surplus and mixed income | p.p. | 9.2 | 7.7 | 7.3 | 4.8 | 6.6 |
| Taxes less subsidies on production | p.p. | 2.4 | -0.4 | -1.1 | 1.6 | -0.1 |
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 second quarter of 2023 was estimated at €4,278.6 million, registering an increase of €398.1 million, or 10.3 per cent, when compared to the same quarter of 2022.
Updates
New information on the Internal Reference Rate (IRR) used for the calculation of Financial Intermediation Services Indirectly Measured (FISIM) has been integrated. This led to revisions in Financial and insurance activities in the production approach and in Household final consumption expenditure in the expenditure approach under two headings; Housing, water, electricity, gas and other fuels and Miscellaneous goods and services.
More information relating to this ad hoc revision may be accessed at: https://nso.gov.mt/wpcontent/uploads/Press-information-notice-GDP.pdf
In September 2023, the Supply and Use Tables (SUT) of 2018 will be uploaded both in nominal and volume terms to the following path: https://nso.gov.mt/national_accounts/
Additional Tables and Charts
The Gross Domestic Product for the second quarter of 2023 has been subject to an ad-hoc revision in national accounts data. Ad hoc revisions result mostly from the incorporation of new data sources to replace past estimates with more robust figures, and methodological improvements, which may cause more significant changes than those carried out in routine revisions. The results of 2018 are now considered definitive until the next benchmark revision.
Due to these modifications, it is not possible to compare the data in this news release with figures previously published.
Methodological Notes
1. The Gross Domestic Product for the second quarter of 2023 has been subject to an ad-hoc revision in national accounts data. Ad hoc revisions result mostly from the incorporation of new data sources to replace past estimates with more robust figures, and methodological improvements, which may cause more significant changes than those carried out in routine revisions. The results of 2018 are now considered definitive until the next benchmark revision.
Due to these modifications, it is not possible to compare the data in this news release with figures previously published.
The Gross Domestic Product for the second quarter of 2023 has been subject to an ad-hoc revision in national accounts data. Ad hoc revisions result mostly from the incorporation of new data sources to replace past estimates with more robust figures, and methodological improvements, which may cause more significant changes than those carried out in routine revisions. The results of 2018 are now considered definitive until the next benchmark revision.
Due to these modifications, it is not possible to compare the data in this news release with figures previously published.
- In 2023 Q2, Gross Domestic Product (GDP) rose by 3.9 per cent in volume terms.
- Final domestic demand contributed negatively to GDP growth (-2.7 percentage points) due to negative growth in Gross fixed capital formation.
- Conversely, foreign trade contributed positively to GDP growth (6.6 percentage points) attributable to an increase in Exports of goods and services and a decrease in Imports of goods and services.
