Provisional estimates indicate that the Gross Domestic Product (GDP) for the second quarter of 2017 amounted to €2,657.7 million, an increase of €209.0 million or 8.5 per cent when compared to the corresponding period last year.
In real terms, GDP went up by 6.4 per cent, the NSO said in a statement today.
Gross Domestic Product: Q2/2017
The production approach
During the second quarter of 2017, Gross Value Added (GVA) increased by €193.9 million when compared to the same quarter last year. This was mainly generated by professional, scientifi c and technical activities; administrative and support service activities which increased by €64.1 million or
24.3 per cent; wholesale and retail trade; repair of motor vehicles and motorcycles; transportation and storage; accommodation and food service activities which increased by €44.8 million or 9.6 per cent and arts, entertainment and recreation, repair of household goods and other services which increased by €30.0 million or 10.2 per cent. The slight drop registered in real estate activities is due to an enterprise reclassification.
The expenditure approach
The expenditure approach is another method for calculating GDP. It is the total of households, government and non-profit institutions serving households consumption, investment and net exports.
During the second quarter of 2017, total final consumption expenditure in nominal terms increased by 1.4 per cent. This was mainly due to an increase of 5.1 per cent in household fi nal consumption expenditure and a drop of 7.9 per cent in government final consumption expenditure when compared to the same quarter last year. In real terms, total final consumption expenditure increased by 0.8 per cent, and is explained by an increase of 5.1 per cent in household final consumption expenditure and a drop of 9.9 per cent in government final consumption expenditure when compared to the same quarter last year.
Gross fixed capital formation which measures investment, decreased by 25.1 per cent in nominal prices and by 27.4 per cent in real terms. Exports of goods and services increased by 7.0 per cent in nominal terms and by 5.0 per cent in real terms. Imports of goods and services decreased by 4.5 per cent in nominal terms and by 6.5 per cent in real terms.
The income approach
The third approach to measure economic activity is the income approach which shows how GDP at market prices is distributed into compensation of employees, operating surplus of enterprises and taxes on production and imports net of subsidies.
Compared to the corresponding quarter last year, GDP at current prices went up by €209.0 million, and is estimated to have been distributed into a €56.8 million increase in compensation of employees, a €135.3 million increase in gross operating surplus of enterprises, and a €16.8 million increase in net taxation on production and imports.