Provisional estimates indicate that the Gross Domestic Product (GDP) for the second quarter of this year amounted to €2,825.2 million, registering a decrease of €494.3 million, 14.9% when compared to the corresponding period of last year. In volume terms, GDP fell by 16.2%.
Statistics published by the National Statistics Ofiice, NSO, show that during the second quarter of 2020, Gross Value Added (GVA) fell by 13.8% in nominal terms and 15.1% in volume terms, when compared to the same quarter last year.
GVA fell significantly in the second quarter, with widespread contractions across all main sectors of the economy. The services sector fell by 15.7%, industry decreased by 12.8%, construction contracted by 8.6% and agriculture and fishing declined by 13.6% in volume terms.
The drop in services was mainly driven by declines in the accommodation and food service activities.
The decline in industry was mainly driven by Manufacturing, which fell by 10.5 per cent.
Net taxes on products contributed negatively towards GDP growth with a decline of 25.8% in volume terms.
The expenditure approach
During the second quarter of 2020, total Final consumption expenditure witnessed an annual drop of 10.2% in nominal terms and 11.8% in volume terms. This was the result of a decrease in household expenditure of 22.3%, which was partly off-set by an increase in the expenditure of Non-profit institutions serving households of 47.0% and a rise in Government expenditure of 11.9% in volume terms.
The income approach
Compared to the second quarter of 2019, the €494.3 million decrease in GDP in nominal terms was primarily a result of a €315.0 million decrease in gross operating surplus and mixed income and a drop of €234.4 million in net taxation on production and imports.
Gross National Income
The 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 2020 was estimated at €2,523.0 million.