Gross Domestic Product: Q4/2024
For the fourth quarter of 2024, the Gross Domestic Product (GDP) of the Maltese economy registered a positive year-on-year growth rate of 2.8 per cent in volume terms. The GDP deflator went up by 2.8 per cent compared to the same quarter the previous year.
Table 1. Selected indicators
| Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | ||
| Gross domestic product (nominal) | € 000 | 5,327,979 | 5,287,005 | 5,674,532 | 5,879,789 | 5,629,532 |
| Gross national income (nominal) | € 000 | 4,624,275 | 4,432,458 | 4,951,869 | 5,134,207 | 4,782,408 |
| Gross domestic product (deflator) | 2020=100 | 114.5 | 114.9 | 117.8 | 117.5 | 117.7 |
| Gross domestic product per capita (nominal) | € | 9,487 | 9,316 | 9,958 | 10,269 | 9,801 |
| Gross national income per capita (nominal) | € | 8,234 | 7,810 | 8,690 | 8,967 | 8,326 |
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 less the value of intermediate consumption, and Taxes less subsidies on products.
During the fourth quarter of 2024, GVA rose by 0.9 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) and Industry (NACE Sections B to F) were both positive and stood at 1.8 percentage points and 0.4 percentage points, respectively. Agriculture and fishing (NACE Section A) had a negative impact on GVA growth of 1.3 percentage points.
The increase in Service activities was mainly driven by the growth rates recorded in the following sectors: Financial and insurance activities (11.8 per cent), Accommodation and food service activities (20.1 per cent) and Human health and social work activities (9.9 per cent).
Table 2. Production, contributions to GDP growth in volume terms
| Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | ||
| Gross value added | p.p. | 5.6 | 5.8 | 4.8 | 3.0 | 0.9 |
| Agriculture and fishing1 | p.p. | 0.5 | 0.1 | 0.5 | -1.0 | -1.2 |
| Industry | p.p. | 1.0 | 0.6 | 0.4 | 1.2 | 0.4 |
| Services | p.p. | 4.1 | 5.0 | 3.9 | 2.8 | 1.7 |
| Taxes less subsidies on products | p.p. | 0.7 | 2.6 | 3.3 | 1.9 | 1.9 |
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 positive contribution of 2.3 percentage points to the year-on-year GDP growth rate in volume terms. External demand registered a positive contribution of 0.4 percentage points.
In the fourth quarter of 2024, Final consumption expenditure increased by 6.4 per cent in volume terms. This was the result of increases in Private final consumption and General government final consumption of 4.1 per cent and 12.5 per cent, respectively.
Gross fixed capital formation declined by 9.3 per cent in volume terms.
Exports and imports of goods and services in volume terms rose by 3.9 per cent and 4.0 per cent, respectively.
Table 3. Expenditure, contributions to GDP growth in volume terms
| Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | ||
| Final consumption expenditure | p.p. | 6.6 | 4.3 | 3.7 | 3.5 | 4.2 |
| Private | p.p. | 5.2 | 4.0 | 2.8 | 2.1 | 2.0 |
| Government | p.p. | 1.4 | 0.2 | 0.9 | 1.4 | 2.2 |
| Gross capital formation | p.p. | -6.1 | 1.4 | 1.1 | 1.3 | -1.9 |
| Fixed assets | p.p. | -6.1 | 1.4 | 1.1 | 1.3 | -1.9 |
| Inventories and valuables | p.p. | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Exports of goods and services | p.p. | 9.2 | 9.9 | 7.3 | 4.8 | 4.8 |
| Imports of goods and services | p.p. | 3.4 | 7.2 | 3.9 | 4.7 | 4.4 |
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 less subsidies.
Compared to the fourth quarter of 2023, the €301.6 million increase in nominal GDP was the result of a €297.6 million increase in Compensation of employees, a €9.2 million rise in Gross operating surplus and mixed income, and a decrease of €5.2 million in Net taxation on production and imports.
Table 4. Income, contributions to GDP growth in nominal terms
| Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | ||
| Compensation of employees | p.p. | 3.0 | 4.7 | 4.1 | 4.2 | 5.6 |
| Agriculture and fishing | p.p. | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Industry | p.p. | 0.4 | 0.5 | 0.4 | 0.4 | 0.4 |
| Services | p.p. | 2.5 | 4.2 | 3.6 | 3.8 | 5.2 |
| Gross operating surplus and mixed income | p.p. | 7.5 | 6.0 | 4.2 | 3.9 | 0.2 |
| Taxes less subsidies on production | p.p. | 0.7 | 2.0 | 3.3 | -0.1 | -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 fourth quarter of 2024 was estimated at €4.8 billion.
1 Chain-linking for variables with a potentially changing sign is aggravated and the results could prove to be erratic. Specifically in such cases only the contribution to the GDP growth is computed.
Tables
Tables
Methodological Notes
1. The chain-linked volume indices have been re-referenced to 2020=100 (Tables 6 and 8).
7. The ESA 2010 GNI Inventory provides a detailed explanation of sources and methods used for estimating GNI in Malta. It is the basis for the Eurostat assessment of the quality and exhaustiveness of GNI data and their compliance with ESA 2010 in the context of the GNI for own resources purposes. The Inventory is a reference document that is kept up-to-date to reflect the latest methodology in place. The GNI Inventory is available online.
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Gross Domestic Product: Q4/2024
- In 2024 Q4, Gross Domestic Product (GDP) rose by 2.8 per cent in volume terms.
- Domestic demand contributed positively to GDP growth in volume terms (2.3 percentage points).
- Foreign trade also contributed positively to GDP growth in volume terms (0.4 percentage points).
- The GDP deflator rose by 2.8 per cent when compared to 2023 Q4.
Gross Domestic Product: Q4/2024
