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- Insurance, banking and real estate grows 13.4 per cent, transport and communications down 12.2 per cent
Malta’s GDP contracted by 1.7 per cent last year in real terms and amounted to a total of Lm1,419.6 million, the National Statistics Office reports this week.
The Gross National Product, meanwhile, declined by 1.6 per cent, to Lm1,431.3 million.
Following are sectoral highlights for last year, which reveal a massive 13.4 per cent increase for insurance, banking and real estate and a 12.2 per cent plummet for the transport and communications sector.
Insurance, Banking and Real Estate
The Insurance, Banking and Real Estate sector contributed positively to the GDP. Whilst the contribution by this sector stood at Lm132.2 million during 2002, this increased by 13.4 per cent to Lm149.9 million in 2003. The overall income from employment within this sector increased by 11.5 per cent or Lm5.5 million to Lm52.9 million, all three subsectors contributing positively to this increase. In addition, this sector’s overall profit component also went up by Lm12.3 million or 14.5 per cent to Lm97.0 million when compared to Lm84.7 million last year. This consolidation in profits was reflected both in the banking sub-sector and in the real estate sub-sector. On the other hand, the insurance sub-sector suffered a decrease in profits of Lm2.9 million. At 10.3 per cent, this sector’s relative contribution to the GDP increased when compared to 9.2 per cent last year.
Transport and Communication
At Lm86.6 million, the contribution to the GDP by the Transport and Communication sector decreased by Lm12.0 million or 12.2 per cent when compared to Lm98.6 million in 2002. Within this sector, income from employment decreased by 5.4 per cent or Lm3.4 million to Lm58.8 million. This sector’s profit component also went down by Lm8.6 million, or 23.7 per cent, to Lm27.8 million when compared to Lm36.4 million last year. At 6.0 per cent, this sector’s relative contribution to the GDP fell when compared to 6.9 per cent in 2002.
Agriculture and Fishing
This sector registered a drop in value added of 1.2 per cent to Lm35.7 million from Lm36.1 million reported for 2002. This sector’s relative contribution to the GDP was equal to 2.5 per cent during the period under review. Employment income rose by Lm1.9 million over the previous year’s level of Lm5.1 million, whilst profits diminished by Lm2.4 million reaching Lm28.6 million during 2003. The lower level of fish exports largely affected this sector’s performance.
Construction and Quarrying
The nominal contribution of the sector to the GDP decreased marginally to 3.3 per cent from 3.4 per cent in 2002. The value added attributable to this industry went down by Lm0.3 million to Lm48.1 million, a reduction of 0.7 per cent over the previous year. Employment income remained unchanged at Lm32.6 million, with the public sector reducing its share and the private sector registering a 6.1 per cent increase in labour costs. During the year under review the profit component diminished by Lm0.3 million to Lm15.5 million, a year-on-year drop of 2.0 per cent.
Manufacturing
The sector’s nominal contribution to the GDP increased by Lm5.5 million, or 1.7 per cent to Lm332.1 million. Estimated profits, previously at Lm148.2 million, increased marginally to Lm149.6 million, or 0.9 per cent. Employment income rose from Lm178.4 million in 2002 to Lm182.5 million, or 2.3 per cent, despite a fall of 2.9 per cent in the number of full-time employment. The manufacturing sector’s share of the GDP edged up to 22.9 per cent from 22.8 per cent.
Wholesale and Retail trade
Value added in the Wholesale and Retail Trade sector increased by 4.7 per cent from Lm154.4 million in 2002 to Lm161.6 million in 2003. This increase in value added was driven both by higher employment income and profits higher than those registered in the previous year. Total employment income advanced by 5.6 per cent, from Lm40.7 million earned in 2002 to Lm 42.9 million in 2003. Profits also climbed by 4.4 per cent from Lm113.7 million recorded in the previous year. The sector’s relative contribution to the GDP rose slightly when compared to the previous year, from 10.8 to 11.1 per cent.
Government Enterprises
The Government Enterprises’ sector’s contribution to the GDP went down to 5.9 per cent, the lowest in recent years. In nominal terms the gross value added dropped by Lm7.4 million, or 8.0 per cent. This was practically wholly due to a sharp decline in the profit component, which dropped by 14.7 per cent, or Lm7.0 million. These decreases were reported in the fourth quarter, with one particular enterprise’s loss wiping out the profits of other enterprises. The contribution of the Public Administration sector to the GDP increased by Lm10.2 million, or 4.4 per cent, to Lm243.5 million. The main contributors to this increase were the normal incremental and statutory increases in line with the civil service collective agreement and the setting up of new entities including Heritage Malta (replacing the Museums Department) and Mount Carmel Hospital (replacing the relevant cost centre within the Ministry of Health). On the other hand the wages element of the agriculture public/private partnership was removed from Public Administration in 2003. During the year under review this sector’s percentage share of the GDP increased from 16.3 per cent to 16.8 per cent.
Property income
Income from property decreased by Lm11.8 million or 8.8 per cent, from Lm135.3 million to Lm123.4 million, when compared to the previous year. There was a drop of 14.6 per cent or Lm12.4 million in the interest component, whilst the rent component increased by Lm0.5 million or 1.0 per cent. Income from property as a percentage of the GDP fell to 8.5 per cent from 9.5 per cent in 2002.
Private Services
The Private Services sector’s overall performance improved by Lm11.5 million or 6.7 per cent to Lm183.6 million from Lm172.2 million last year. The profitability of this sector increased by 7.6 per cent – higher by Lm4.5 million –whilst income from employment advanced by Lm6.9 million or 6.2 per cent to Lm119.6 million. There was an overall increase in the valued added of the hotels’ industry. This sector’s relative contribution to the GDP rose by 0.7 per cent to 12.7 per cent.
Consumer expenditure
Consumers’ expenditure’s overall performance improved by Lm13.4 million or 1.2 per cent reaching Lm1,092.8 million from Lm1,079.4 million in 2002. At constant 1995 prices consumers’ expenditure went up by Lm2.6 million or 0.3 per cent to Lm931.0 million from Lm928.4 million. Moderate increases in expenditure outlays were registered on food, beverages and tobacco, furniture, furnishings and household equipment and operation, medical care and health expenses, transport and communication, recreation, entertainment, education and cultural services. A decline was registered on outlays related to clothing and footwear, gross rent, fuel and power and miscellaneous goods and services.
Government consumption expenditure
Government consumption expenditure, previously at Lm339.9 million, increased to Lm366.9 million during 2003. The overall growth in government consumption expenditure amounted to Lm26.9 million, or 7.9 per cent, over last year. This increase is partially attributable to a number of new government entities set up in 2003. Expenditure by government departments increased by 2.5 per cent. In real terms, government consumption expenditure increased by Lm16.1 million, or 6.0 per cent, from Lm267.0 million in 2002 to Lm283.0 in 2003. Expenditure on gross fixed capital formation increased nominally by Lm68.6 million or 19.6 per cent, from Lm350.6 million in 2002 to Lm419.2 million last year. Construction expenditure increased by Lm6.2 million or 4.2 per cent, and machinery investment increased by Lm62.4 million, or 30.8 per cent. The extraordinary increase in machinery investment was the result of the disposal of aircraft by the air transport sub-sector, which occurred during 2002. (Gross fixed capital formation is made up of acquisitions less disposals of fixed assets). In real terms, gross fixed capital formation increased by 21.2 per cent Lm290.4 million in 2002 to Lm351.9 million last year. Exports of goods and services declined by Lm50.9 million to Lm1,446.7 million. However this drop has to be seen in the light of the extraordinary ‘re-export’ of aircraft, amounting to Lm41.4 million, registered in 2002. In real terms, exports fell by Lm28.2 million or 2.2 per cent. Imports of goods and services increased by 2.4 per cent to Lm1,543.6 million. In real terms imports advanced by 6.4 per cent to Lm1,353.0 million, due to a drop in the overall unit values of imports. The net own on stocks continued for the third consecutive year.
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