Provisional estimates indicate that the Gross Domestic Product (GDP) for the third quarter of 2018 amounted to €3,252.6 million, an increase of €281.0 million or 9.5 per cent when compared to the corresponding period last year, the NSO said today. In real terms, GDP went up by 7.5 per cent.

During the third quarter of 2018, Gross Value Added (GVA) increased by €218.4 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 €49.4 million or 12.7 per cent; Arts, entertainment and recreation, repair of household goods and other services, which increased by €48.3 million or 13.2 per cent; Public administration and defence; compulsory social security; education; human health and social work activities, which increased by €30.1 million or 7.1 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 €28.0 million or 11.5 per cent.

During the third quarter of 2018, GDP growth was mainly attributable to domestic demand and external demand. Total final consumption expenditure increased by 8.1 per cent in nominal terms and 6.5 per cent in real terms. This was the result of an increase in household expenditure of 9.1 per cent in nominal terms and 8.4 per cent in real terms, and an increase in government expenditure of 5.9 per cent in nominal terms and 1.9 per cent in real terms. This was further compounded by an increase in gross fixed capital formation of 5.2 per cent in nominal terms and 0.6 per cent in real terms.

Exports of goods and services increased by 5.8 per cent in nominal terms and 2.6 per cent in real terms. Imports of goods and services increased by 5.1 per cent in nominal terms and by 1.2 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 third quarter of 2017, GDP at current prices went up by €281.0 million, and is estimated to have been distributed into a €64.5 million increase in compensation of employees (COE), a €162.9 million increase in gross operating surplus (GOS) of enterprises and a €53.5 million increase in net taxation on production and imports.