In the first quarter this year, Malta’s Gross Domestic Product (GDP) edged up by Lm4.3 million to Lm441.7 million in nominal terms, an increase of one per cent over the corresponding quarter last year.
In real terms, the GDP fell by 0.1 per cent. In the quarter under review, the Gross National Income (GNI) rose by Lm11.4 million, or 2.6 per cent, to Lm446.2 million.
Gross value-added in the agriculture sector reached Lm9.5 million, representing an improvement of Lm0.3 million when compared to the corresponding period in 2004.
During the period under review, this sector’s contribution to the GDP, compared to the previous year, showed an increase of 0.1 per cent (2.5 per cent in 2005 compared to 2.4 per cent in 2004).
The fishing sector’s gross value-added registered a drop of 0.5 per cent from the comparable estimate of 2004. This sector’s contribution to the overall economy amounted to 0.1 per cent in the period under consideration, remaining unchanged from the comparable period in 2004.
The contribution of the mining and quarrying industry to gross value added stood stable at around 0.4 per cent compared to the corresponding quarter last year. The gross value added attributable to this industry reached Lm1.5 million, an improvement of 5.9 per cent over last year’s quarter. In spite of such an increase in the gross value added, the industry’s compensation of employees diminished by 3.6 per cent. Conversely, the operating surplus rose by 11.6 per cent compared to the same quarter last year.
The contribution of the manufacturing sector to gross value added fell by 5.5 per cent or Lm4.4 million, while the compensation of employees fell by 0.6 per cent over the same quarter last year. Sub-sectors which contributed positively included the textile industry, the manufacture of fabricated metal products, the manufacture of machinery and equipment and the manufacture of other transport equipment.
The sub-sectors which contributed negatively included the clothing and leather industries, the manufacture of radio, television, and communication equipment and apparatus, and the manufacture of furniture. The manufacturing sector’s share of the GDP (at basic prices) declined from 21.2 per cent last year to 19.9 per cent this year.
The electricity, gas and water supply sector’s contribution to the GDP fell to 1.7 from 2.4 per cent. Gross value-added went down to Lm6.6 million from Lm9.1 million. Although output rose by 28.3 per cent, higher fuel prices discounted this increase and intermediate consumption rose by 70.0 per cent. This sector’s compensation of employees remained practically unchanged.
The share of the construction industry to gross value added increased to 5.2 per cent from 5.0 per cent in the same quarter last year. The gross value added attributable to this industry went up by Lm0.8 million to Lm19.7 million, an improvement of 4.4 per cent over last year’s corresponding quarter.
The industry’s compensation of employees fell by 1.2 per cent, whereas the operating surplus improved by 11.8 per cent compared to the same quarter a year ago.
The fall in the compensation of employees is attributable to a negative year-on-year change of 10.5 per cent in the cost of labour services payable within the government sector.