Malta’s Economic Growth Continues

Malta’s Economic Growth Continues to Impress

Economic growth in Malta increased by 5.2% during the first quarter of 2016 when compared to an already high rate of 6.3% recorded in the same quarter of 2015. The Maltese economy is estimated to have grown by 7.6% when considering that the EU and the Euro Area are growing at 1.8 and 1.7% respectively.

This significant growth reflected strong increases in both investment and private consumption. In the first quarter of 2016, investment activity recorded a significant increase of 16.2% or €57.6 million and private consumption increased by 5.9% or €58.5 million, over the previous year. Exports of goods and services also registered an increase of 0.5%.

Another noticeable growth area was also recorded in the real estate sector which increased by 11.9% and the professional, scientific and technical activities sector which increased by 11.2%. Noticeable increases were also recorded in the information and communication sector, in the wholesale and retail trade, along with the mining and quarrying and the agriculture and fishing sectors. Another area recording strong and consistent growth was that of the manufacturing sector which recorded a significant increase of 6.79%.

Reflecting the dynamic performance in the labour market, compared to the corresponding quarter last year, the increase in GDP at current prices of €153.4 million is estimated to have been distributed into a €54.5 million increase in compensation of employees, a €65.4 million increase in gross operating surplus of enterprises, and a €33.6 million increase in net taxation on production and imports.

Minister for Finance Edward Scicluna remarked that the Government’s target to achieve a potential growth in Malta’s economy has been a success. He added that this was achieved by increasing labour force participation and measures to attract local and foreign investment by attaining economic and fiscal stability.