‘RECORD ECONOMIC GROWTH TRANSLATES INTO HIGHER EMPLOYMENT INCOME AND PROFITS’ – MINISTER FOR FINANCE EDWARD SCICLUNA

Reference Number: PR172821, Press Release Issue Date: Dec 06, 2017
 
The €700 million increase in GDP in the first three quarters of this year were distributed in a €200 million increase in compensation of employees, a €350 million increase in business profits, and a €150 million increase in revenue from production and imports taxes.

Minister for Finance Edward Scicluna said: ‘I am pleased to note that the growth is indeed being enjoyed by all as confirmed by the robust increases in business profits, wages and salaries, and private consumption.’

Malta has once again recorded the highest economic growth in the Euro Area with a real GDP growth rate of 7.2 per cent in the third quarter of this year. This growth rate is nearly thrice the average growth of 2.5 per cent recorded in both the EU28 and the Euro Area. In nominal terms, GDP grew by 9.7 per cent.

The consistently robust growth recorded during the first three quarters of this year was reflected in a €147 million or 4.5 per cent increase in private consumption of households. This, in turn, reflects the dynamic performance in the labour market boasting a consistently record low unemployment rate of 3.5 cent. Government final consumption expenditure remained contained with a marginal increase of €7 million or 0.6 per cent. 
 
During the first nine months of 2017, economic growth remained broad-based as the increase in the gross value added for all sectors reached €562 million. This was reflected in double digit growth rates by the professional, scientific and technical activities and administrative and support services and the construction sector. Other notable private sector increases were registered in the arts, entertainment and recreation sector, and the information and the communication sector, as well as the wholesale and retail trade, transportation and storage, and the accommodation and food services sector. Significant growth in gross value added was also recorded in the manufacturing sector.