GDP up by 0.5% during 1st quarter of 2020

Economy
Economy

The Maltese real economic growth managed to remain in positive territory with a rate of 0.5%. Nominally, GDP grew by 1.9%. This data was published by the National Statistics Office, NSO.

In a statement, the Ministry for Finance said that Malta fared quite well when compared to the EU and Euro Area averages.

According to Eurostat large EU economies including Germany, Italy, France and Spain recorded significant drops in their GDP.

It was explained how wages and salaries increased by €78 million during the first quarter of this year, business profits also increased during this period by €36 million.

The Ministry for Finance said that in contrast, net taxation on production and imports decreased by €55 million and this decline reflected the subsidies being given to companies which need to be netted out of the GDP.

According to statistics during the first quarter of 2020, total final consumption expenditure increased by 2.4% in nominal terms and 0.6% in volume terms as the government increased expenditure to support businesses and mitigate the economic impact of COVID-19 on families.

NSO statistics also show that revenue for the period of January to April decreased by €220 million, while recurrent expenditure increased by €170 million. Expenditure on interest payments decreased during the January to April period by €4.4 million.

Finance Minister Edward Scicluna said that as predicted by the IMF, the EU and the Credit Rating Agencies, the Maltese economy was hit by the COVID-19 pandemic at a time when it was diversified, resilient and with enough fiscal space to combat the crises with confidence. He also said that the government is determined to continue providing the required support to all affected sectors while pushing towards a successful and quick recovery.

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