Malta plunged into further recession during the second quarter of the year, with NSO statistics confirming Gross Domestic Product (GDP) in negative, dropping by 1.3 per cent compared to the same three months of last year. In real terms, GDP contracted by 3.3 per cent.
The measurement of GDP from the Expenditure Approach showed that GDP at constant prices declined by 3.3 per cent. Total final consumption expenditure in real terms went down by 1.0 per cent.
The NSO explained that a decline in tourist arrivals and the downturn in global demand were reflected in a decline in Malta’s economic performance during the period under review.
Drops in value added were registered in the manufacturing sector; wholesale and retail trade; hotels and restaurants; and transport, storage and communication. Growth in value added was mainly registered in electricity, gas and water supply; financial intermediation; health; public administration; other community services; education and real estate, renting and business activities.
The value added of the agriculture and construction sectors remained practically unchanged.
Gross fixed capital formation at constant prices dipped by 26.2 per cent. Real exports and real imports also experienced drops.
The decline in GDP at current prices, amounting to €18.2 million, was estimated to have been distributed into a €2.9 million rise in compensation of employees, a €29.7 million fall in gross operating surplus of enterprises, and a €8.6 million increase in net taxation on production and imports.