Provisional estimates indicate that the Gross Domestic Product (GDP) for the first quarter of 2019 amounted to €3,092.0 million, an increase of €213.8 million or 7.4 per cent when compared to the corresponding period last year. In volume terms, GDP went up by 4.9 per cent, the NSO said today.

The production approach

During the first quarter of 2019, Gross Value Added (GVA) increased by €186.7 million when compared to the same quarter last year.  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, scientific and technical activities; administrative and support service activities which increased by €42.9 million or 11.6 per cent, arts, entertainment and recreation, repair of household goods and other services which increased by €35.7 million or 9.0 per cent, public administration and defence, compulsory social security, education, human health and social work activities which increased by €29.1 million or 6.4 per cent, and wholesale are retail trade, transportation and storage, accommodation and food service which increased by €24.5 million or 5.0 per cent. There was a slight drop in agriculture and fishing.

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 and net exports.

During the first quarter of 2019, GDP growth was mainly attributable to domestic demand. Total final consumption expenditure increased by 10.7 per cent in nominal terms and 9.2 per cent in volume terms. This was the result of an increase in household expenditure of 5.1 per cent in nominal terms and 3.9 per cent in volume terms, and an increase in government expenditure of 27.1 per cent and 24.2 per cent in volume terms. This was further compounded by an increase in gross fixed capital formation of 35.1 per cent in nominal terms and 31.8 per cent in volume terms. Exports of goods and services increased by 3.3 per cent in nominal terms and 0.9 per cent in volume terms.  Imports of goods and services increased by 8.4 per cent in nominal terms and by 6.0 per cent in volume terms.

The income approach

The third approach to measure economic activity is the income approach which shows how GDP at market prices is distributed among compensation of employees, operating surplus of enterprises and taxes on production and imports net of subsidies.

Compared to the first quarter of 2018, GDP at current prices went up by €213.8 million, and is estimated to have been distributed into a €72.0 million increase in compensation of employees, a €125.1 million increase in gross operating surplus of enterprises and a €16.7 million increase in net taxation on production and imports.