Tuesday, June 25, 2024

Malta’s GDP growth slows, but still tops EU table

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Malta’s gross domestic product was up during the first three months of 2024 compared to the same period last year, but has dipped slightly since the end of 2023, new NSO data shows.

GDP calculates the value of goods and services produced by Malta’s economy, effectively measuring how well a country’s economy is performing.

The data shows that GDP grew by 4.6% during the first quarter of this year, now standing at €4.9 billion in nominal terms, or roughly €8,800 for each person in Malta.

While this is 8.4% (or some €380 million) higher than at the same point last year, it represents a slight dip from the previous two quarters, when it had hit the €5 billion mark.

The data indicates that Malta’s economic growth is largely driven by its services industry, with financial services, real estate and professional or scientific services all recording strong growth rates over the previous year.

Likewise, exports of goods and services remain a driving force of Malta’s economy, although their contribution to Malta’s economic growth has dipped compared to previous quarters.

Malta’s economic growth tops EU table

The data suggests that Malta’s GDP growth remains higher than any other EU country.

EU data published earlier this month shows that GDP across both the EU and the Eurozone had grown marginally by 0.4% in the first quarter of 2024, compared to the first three months of 2023.

Prime Minister Robert Abela was quick to point this out, posting on X that Malta’s economy had grown at twelve times the rate of that across the rest of the European bloc.

A longer-term view of the data shows that Malta’s economy recovered strongly in the aftermath of the pandemic, rebounding sharply in the spring of 2021 before gradually stabilising as the months went by, often registering gradual growth from one quarter to the next.

Central Bank estimates suggest that Malta’s GDP is expected to moderate over the longer term, dipping slightly to 3.3% by 2026.

 

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