The Maltese economy grew by 4.7 per cent during the first half of this year, sustaining the growth momentum recorded in the last five years. Nominal GDP grew by 7.3 per cent.
Growth in the first half of 2019 reflected a 5.4 per cent growth in the first quarter and a 4.0 per cent growth in the second quarter.
The year-on-year economic growth rate for the first half of 2019 continued to be more than three times the average growth rate of 1.4 per cent recorded in the EU. The Euro Area grew by 1.1 per cent during the same period.
“The coming Budget will ensure that this growth is sustained so that it continues to be enjoyed by Maltese and Gozitan families through a higher standard of living and a better quality of life”, said Minister for Finance Edward Scicluna.
Compensation of employees continued to increase during the first half of 2019, growing by €140 million while business profits increased by €269 million.
Domestic demand continued to be the main driver of growth during the first quarter. This continued to reflect the record increases registered in employment and the consistent increases in wages and salaries. Net exports also contributed positively to growth.
Economic growth continued to be broad-based as the increase in the gross value added for all sectors rose to nearly €400 million. Indeed, growth was recorded in both the industrial and services sectors.
Double-digit growth rates by the professional, scientific and technical and administrative and support sector and the real estate activities and the construction sectors. Other notable private sector increases were registered in the arts, entertainment and recreation sector which includes iGaming, the information and communication sector, and the financial and insurance sector.
Worth noting is the growth in the wholesale and retail trade sector which grew by 6.3 per cent. Gross value added in the manufacturing sector increased by 2.7 per cent.