Provisional estimates indicate that the Gross Domestic Product (GDP) for 2018 amounted to €12,320.0 million, an increase of €1,006.5 million or 8.9 per cent when compared to 2017. In volume terms, GDP went up by 6.6 per cent, the NSO said today.
Gross Domestic Product: 2018 The production approach
The production approach consists of summing the gross value added of all industries. For each industry, this involves first determining its output and then subtracting the goods and services that were used up in the process of generating that output. During 2018, Gross Value Added (GVA) increased by €832.4 million or 8.3 per cent when compared to 2017.
This increase was mainly generated by arts, entertainment and recreation, repair of household goods and other services which increased by €164.7 million or 11.3 per cent, public administration and defence; compulsory social security; education; human health and social work activities which increased by €151.8 million or 9.1 per cent, professional, scientific and technical activities; administrative and support service activities increased by €145.2 million or 9.8 per cent, and mining and quarrying; manufacturing; electricity, gas, steam and air conditioning supply; water supply; sewerage, waste management and remediation activities which increased by €88.5 million or 8.9 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-profi t institutions serving households, investment, and net exports.
During 2018, GDP growth was mainly attributable to domestic demand. Total fi nal consumption expenditure increased by 10.2 per cent in nominal terms and 8.5 per cent in volume terms. This was mainly the result of an increase in household expenditure of 8.3 per cent in nominal terms and 7.5 per cent in volume terms, and an increase in government expenditure of 15.9 per cent and 11.7 per cent in volume terms. Gross fi xed capital formation increased by 0.6 per cent in nominal terms and decreased in volume terms by 3.7 per cent. Exports of goods and services increased by 4.3 per cent in nominal terms and 2.1 per cent in volume terms. Imports of goods and services increased by 3.6 per cent in nominal terms and by 1.3 per cent in volume terms(Tables 2 and 4).
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 2017, GDP at current prices went up by €1,006.5 million, and is estimated to have been distributed into a €332.0 million increase in compensation of employees (COE), a €525.1 million increase in gross operating surplus (GOS) of enterprises and a €149.4 million increase in net taxation on production and imports.