In the first quarter of this year, economic growth in Malta
continued to exceed expectations increasing by 5.2 per cent over an
already high growth rate of 6.3 per cent recorded in the same
quarter of last year. This comes at a time where the EU and the
Euro Area are growing at 1.8 and 1.7 per cent, respectively. In
nominal terms, the Maltese economy is estimated to have grown by
7.6 per cent.
This robust economic performance reflected strong increases in
both investment and private consumption. Indeed in the first
quarter of 2016, investment activity recorded a significant
increase of 16.2 per cent or €57.6 million despite the fact
that Malta is currently at the start of the 2014-2020 EU funding
program. Private consumption increased by 5.9 per cent or
€58.5 million, over the previous year. Exports of goods and
services also registered an increase of 0.5 per cent.
Economic growth continued to be broad-based as the majority of
sectors recorded positive growth. Double digit growth rates were
recorded in the in the real estate activities sector which
increased by 11.9 per cent and the professional, scientific and
technical activities sector increasing by 11.2 per cent. Other
notable private sector increases were also recorded in the
information and communication sector, in wholesale and retail trade
as well as in the mining and quarrying and the agriculture and
It is noteworthy that the manufacturing sector also recorded a
significant increase in value added of 6.79 per cent.
Mirroring the dynamic performance in the labour market,
compensation of employees increased by 5.8 per cent or €54.5
million in the first quarter of this year while, the robust
economic activity boosted business profits which increased by
7.7per cent or €65.4 million.
Minister for Finance Edward Scicluna comments: "The GDP
data published today show that the Government has achieved one of
its main policy targets which is that of increasing Malta's
growth potential. This was the result of various supply-side
policies implemented throughout these last three years including
measures to increase labour force participation and measures to
attract local and foreign investment by attaining economic and
(Source: PRESS RELEASE ISSUED BY THE MINISTRY FOR
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Prime Minister Freundel Stuart has reiterated that Government is continuing to keep the "ship of state" steady and on a growth path in a still volatile global economic environment.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).