Provisional estimates indicate that the Gross Domestic Product (GDP) in 2017 amounted to €11,108.6 million, an increase of €916.9 million or 9.0 per cent when compared to 2016. In real terms, GDP went up by 6.6 per cent.
Gross Domestic Product: 2017
The production approach
During 2017, Gross Value Added (GVA) increased by €793.8 million when compared to 2016. GVA is the net result of output valued at basic prices less intermediate consumption valued at purchasers’ prices.
This increase was mainly generated by professional, scientifi c and technical activities; administrative and support service activities which increased by €265.3 million or 21.7 per cent; wholesale and retail trade; repair of motor vehicles and motorcycles; transportation and storage; accommodation and food service activities which increased by €135.5 million or 6.7 per cent and public administration and defence; compulsory social security; education; human health and social work activities which increased by €116.5 million or 7.5 per cent.
The expenditure approach
The expenditure approach is another method for calculating GDP and is derived by adding consumption of households, government and non-profit institutions serving households, investment, government spending and net exports.
In 2017, GDP growth is mainly attributable to external demand. Exports of goods and services increased by 5.2 per cent in nominal terms and 1.6 per cent in real terms. Imports of goods and services decreased by 0.1 per cent in nominal terms and by 3.0 per cent in real terms. Domestic demand was low in 2017, mainly due to a drop in gross fixed capital formation which decreased by 5.2 per cent in nominal prices and 7.4 per cent in real terms. In 2017, total final consumption expenditure increased by 3.7 per cent in nominal terms and 3.1 per cent in real terms when compared to 2016.
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 2016, GDP at current prices went up by €916.9 million, and is estimated to have been distributed into a €290.3 million increase in compensation of employees, a €498.3 million increase in gross operating surplus of enterprises and a €128.2 million increase in net taxation on production and imports.