According to a new revised system in calculating the GDP, the NSO has stated that Malta saw a real GDP growth of 2.7% in the second quarter of this year, with a nominal GDP of 5.1%. The total nominal GDP amounted to €6.1 billion, registering an increase of €295.8 million when compared to the same quarter of last year. The GDP inflator was (output prices) was 2.4% higher compared to the same quarter of last year but real growth was higher. Most of the growth came from domestic demand (2%) with the rest coming from foreign trade at (0.7%).
GDP growth has been stabilising downward after popping up significantly following the Covid crash, however GDP growth has also been buoyed with growing government expenditure.
Government’s expenditure continued to increase following the month of June, and in the month of July, with the total deficit coming at €518 million for the year until the end of the month of July. Compared to the previous year, recurrent revenue rose by €13.7 million while total expenditure increased by a whopping €592 million. The largest increase in revenue was registered at €98.4 million while government’s projects and schemes under the Programmes and Initiatives increased by €218.1 million. Government’s expenditure on social security increased by 10.5% in the first half of this year compared to last year.
Total government debt by the end of July was at €11.16 billion and €1.39 billion higher than the same month of 2024.
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